A

Project Report
On
An analytical study of Employees Retention Strategy
at Vijay Solvex Ltd.
Submitted in the partial fulfillment for the award of degree of
Master of Business Administration

{2007 2009}

Guided By :

Submitted By:

Mr. Yash Saini

Bhavna Singhal
MBA 4 Sem.
.

Laxmi Devi Institute of Engineering &Technology

Tijara Highway, Chikaani, Alwar (Raj.)

Declaration
I am BHAVNA SINGHAL student of MBA, LIET, Chikaani, Alwar (Raj.)
Here by declare that informant facts & figures produce in the report is
based on my own experiences & study during my research Employee
Retention Strategy in Vijay Solvex LTD., ALWAR.
I further declared that all information & facts furnish in the project Report
based on extensive research and finding. They are original & first handing
nature.

Date:

BHAVNA SINGHAL
MBA 4 SEM.

Place:

LIET, ALWAR (Raj.)

Acknowledgement
The credit for the successful completion of my dissertation goes primarily to Mr.
Yash Saini & Mr. Ankur Jain Prof. of Laxmi Devi institute of Engineering &
Technology at Chikaani in Alwar, Raj. Who has guided me how to proceed with
dissertation.

I want to thank him for providing me with necessary information of

company for my dissertation.

Besides guidance I was under the supervision of the experienced personals that
demonstrated me how exactly HR principles. We learn are followed in the corporate.
They spared their time for enlightening me with various aspects of needs of training in
the organization.
I owe a great deal to Mr. Vijay Data (Managing Director) of VIJAY SOLVEX
Ltd.Who provided to me the permission to take the interview of their employees in the
office that becomes a learning place for me.
I would also like to thank all the officers, Executives and Staff members who
cooperated with me. I also appreciate the workers who tried to cooperate with me to the
extent possible. So as to make my training a success.
Finally, I would like to heartily thank Mr. Vijendra Shrivastav Miss Kusum
Saini who supported me to prepare this dissertation and valuable suggestion. My
special thank to my parent for constant support and feed back that has enabled to
perform this dissertation.

Preface
The viewing of Human Resource or Personnel of an organization as an important
economic resource is a recent development. HUMAN resource of an undertaking is
defined as a collection of aptitude, skills, expertise, knowledge, and attitude, efforts of
workers, direct and indirect staff and executives. Human resource is considered to be
the most valuable assets of any organization. The performance, success or failure of
the organization is greatly influenced by the quality of this resource.

project study is one of the essential part towards the partial fulfillment of the
requirement of two year full time MBA programmed. In this line, I had an opportunity to
convert my theoretical knowledge to my practical corporate exposure.
This project was undertaken to study vital aspect of Employee Retention Strategy as I
find this topic very interesting. The project is divided into various chapters which gives a
clear picture of what my project is all about, right from the introduction of the company
to analysis & findings. For the fulfillment of the project I went through companys
information its different manufacturing units data, had conversations with my mentor
and other employees of the company.
After that a good amount of research has gone in writing down the reason and certain
important aspects from the last quarter (Q4 2007-09) in accordance with the overall
study of the company..
I hope everyone enjoy my project and find the approach interesting. I had a great deal
of fun doing my research and learning about conceptual and practical things about a
companys HR position. I hope it will add value to Vijay Solvex Ltd. and has also helped
me in understanding and applying the theoretical knowledge which I have gained in my
Second year of Project studies.

Table of Content
Executive summary
Chapter-1 Introduction
1.1 Introduction of human resource management
1.2 Introduction of Company
1.3 Ob. Of the Report
1.4 Ob. Of the Study
Chapter-2 Research Methodology
2.1Research Methodology
2.2Ob. of Research Study
2.3 Research Problem
2.4 Research Design
2.5 Sampling Plan
2.6 Analysis & interpretation
2.7 Types of Research
2.8 Data Collection Method
2.9 Problem that I faced during my Research Problem
Chapter-3 Company Profile
3.1 Data Group
3.2 Data Infosys Ltd.
3.3 Data Info COM Ltd.
3.4 Division of VSL
3.5 Brand of VSL
3.6 Product of VSL
3.7 Location & Plant
3.8 BOD of VSL
3.9 Composition of Broad
3.10 Organization Culture
3.11 Summary of Employees
3.12 Consumption

Chapter-4 Conceptual Frameworks

4.1 Employees retention Strategy
4.2Facts and Findings
14.3 Analysis and Interpretation
Chapter -5
25.1 SWOT
35.2 Conclusion
45.3 Recommendation and Suggestions
55.4 Appendix
65.5 Bibliography
75.6 Synopsis

Executive summary

Vijay Solvex Ltd is the flagship company of Edible Oil Division of Data Group of
Industries. The major products which it manufactures and markets are Mustard
Oil

(Kachchi

Ghani

and

Pakki

Ghani),

Vanaspati

Ghee,

Refined

Soyabean/Mustard oil and Salt under the famous SCOOTER brand ,Fine Bone
China Tableware, Ceramic Gift items, High Tension Porcelain Insulators, Wind
Power, Internet and IT Services and Software.

Established in 1999, Data Infosys Limited, a ISO-9001 company, is India's

pioneer & leader in Internet services, Application services, Project design and
development, Wireless solutions and Call Center operations with services
broadened to meet the all time business and technology needs of today's global
environment.

This report consists of 5 chapters. Chapter -1 gives introduction of Vijay Solvex

Ltd. & Objective of Report & study. Chapter 2 gives the Research Methodology
& problem in research & making project .Chapter-3 in under use overview of
Vijay Solvex Ltd. Chapter-4 in under Conceptual framework of retention strategy
How retain the employees in an organization? Chapter-5 is covers the analysis
report of Company through SWOT Analysis & conclusion provide suggestion for
company .

1.1 Introduction of Human Resource Management

Human Resource Management (HRM) is the function within an organization
that focuses on recruitment of, management of, and providing direction for the
people who work in the organization. Human Resource Management can also be
performed by line managers.
Human Resource Management is the organizational function that deals
with issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits, employee
motivation, communication, administration, and training.
The Human Resources Management (HRM) function
includes a variety of activities, and key among them is deciding what
staffing needs you have and whether to use independent contractors
or hire employees to fill these needs, recruiting and training the best
employees,

ensuring

they

are

high

performers,

dealing

with

performance issues, and ensuring your personnel and management

practices conform to various regulations.

Activities also include managing your approach to employee benefits

and

compensation,

employee

records

and

personnel

policies.

Usually small businesses (for-profit or nonprofit) have to carry out

these activities themselves because they can't yet afford part- or
full-time help. However, they should always ensure that employees
have -- and are aware of -- personnel policies which conform to
current regulations. These policies are often in the form of employee
manuals, which all employees have.

1.2 Introduction of Company:Vijay Solvex Ltd is the flagship company of Edible Oil Division of Data Group of
Industries. The major products which it manufactures and markets are Mustard
Oil

(Kachchi

Ghani

and

Pakki

Ghani),

Vanaspati

Ghee,

Refined

Soyabean/Mustard oil and Salt under the famous SCOOTER brand ,Fine Bone
China Tableware, Ceramic Gift items, High Tension Porcelain Insulators, Wind
Power, Internet and IT Services and Software.

Data Group is an Indian MNC with vested interests in Asia, Europe

and the US. Started in 1978 with a small oil mill (extracting mustard
oil), the group stands today at US$ 200m in just 3 decades The
synergy lies in corporate philosophy of serving the society through
quality products and services at competitive price. Long term
planning and seeing the market well ahead of time are the corner
stones

to

DATA Groups

success

in

this

globally

competitive

economy.

Established in 1999, Data Infosys Limited, a ISO-9001 company, is India's

pioneer & leader in Internet services, Application services, Project design and
development, Wireless solutions and Call Center operations with services
broadened to meet the all time business and technology needs of today's global
environment.

1.3 OBJECTIVES OF THE REPORT

In the scenario of emerging economy, when almost all the companies. The
biggest challenge for the companies is to retain its Man power, the companys
most precious asset. Employee Retention is one of the most important functions
of HRM. Which affect the companys success & performance. This project deal
with Employee Retention strategy of vijay solvex Ltd. Which is a flagship
company of Edible Oil Division of Data Group of industries.
. The project is carried out in two most important sections-

Section 1.(A)

To understand the Employee Retention strategy at VIJAY SOLVEX Ltd.

(B)

Factors influencing Employee Retention strategy

Section 2(A)

To prepare a structure questionnnnaire based on factors

influencing

Employee Retention strategy

(B)

Analysis of primary data & interpret the figures in terms of graph and
chart.

(C)

Conclusion and recommendations are given on the basis of analysis of

finding.

1.4 Objective of the Study:

To know the Employee Retention strategy of

Vijay Solvex Limited.

Analysis the different major sources of Retention Strategy.

To know how HR department work in Vijay Solvex

Limited, at Alwar Plant.

To find out the peoples perception about company.

To come out with conclusion and suggestions based on the analysis and
the Interpretation of data.

2.1 RESEARCH METHODOLOGY

Research is the systematic design; collection, analysis and reporting of data and
findings are relevant to a specific organization situation.

The main objective of the research is to find out the truth, which is hidden and
has not been discovered yet. Research replaces intuitive business decision by
more logical and scientific decisions.

Research methodology is a way to systematically solve the research problem. It

may be understood as a study of how research is done scientifically. Through
research methodology we study the various steps that are generally adopted by
researcher I studying his research problem along with the logic behind them. The
researcher should not only know the various approaches/ techniques available
for particular research techniques, but they also need to know which of these
methods are relevant and which are not.

2.2 The objectives of the research are as follow:

 To find out weather the employees are satisfied with their job.
To find out the effectiveness of training function.
To analyze the vision & the mission of the company.
To find out the company policy regarding salary & wages
To analyze the facilities provided by the organization to the workers.
To find out effectiveness training process.
To find out the effectiveness of the methods of training.
To know the strength and requirement of training of employees of the
company.
To generate a feedback from the area of survey.
To generate solutions to the various problems brought in front during
survey.

2.3 Research Problem

My research problem is to study the level of job satisfaction among its employee
in Vijay Solvex Ltd.in Alwar.
The method of my research work is based upon the collection of data through
questionnaires, observations, and the interviews from its employees. The method
includes the research design, types of research, the data collection, sampling
and analysis. Research design s actually a conceptual structure with which
research is conducted. I choose the Alwar city for my research work.

2.4 Research Design

A research design is the arrangement of condition for collection and analysis of
data in such a manner that it aims to combine relevance to the research purpose
with economy in procedure. It is a actually a conceptual structure with which
research is conducted. It contributes the blue prints for collection of
measurement and analysis of data, since our project deals with the finding out th
advisors

benefits.

Our

research

includes

both

DESCRIPTIVE

EXPLORATORY research design.

2.5 SAMPLING PLAN:

It is very difficult to collect information from every member of a
population .As time and costs are the major limitation that the researcher
faces.
A sample of 100 was taken the sample size of 100 individuals were
selected on the basis of convenient sampling technique. The individuals
were selected in the random manner to form sample and data were
collected from them for the research study.

2.6 ANALYSIS AND INTERPRETATION:

and

Data collection through questionnaire and personnel interview resulted in

availability of the desired information but these were useless until there
were analyzed. Various steps required for this purpose were editing,
coding and tabulating. Tabulating refers to bringing together similar data
and compiling them in an accurate and meaningful manner. The data
collected by questionnaire was analyzed, interpreted with the help of
table, bar chart and pie chart.

2.7 TYPES OF RESEARCH;

Research is a careful investigation or enquiring specially through search of new
facts in any branch of knowledge.
Research methodology is a way to systematically solve the research problem
generally adopted by a researcher in studying his research problem along with
the logic behind them. There are mainly three types of research designExploratory
Descriptive
Casual
This is an exploratory research. Exploratory research is done when we are not
aware of the problem clearly. Find it out, and suggest possible solution. This
research required exploring into many aspects of the performance of the
employees in the organization after training them and finding out the
effectiveness of the training.

2.8 DATA COLLECTION METHODS

One can visualized the fact that a detailed study is required in each practical
situation for better results. Any effort which is directed to such study for better
result is known as research. A research is an organized set of activities to
study and develop a model or procedure or a technique to find the results of a
realistic problem supported by recreate and data such that its objectives are
optimized and further make recommendations or inferences for implementations.
According to Advanced Learners Dictionary of Current English, Research
is defined as a careful investigation or inquiry especially through search for new
facts in any branch of knowledge.
Research refers to the systematic method consisting of enunciating the problem,
formulating a hypothesis, collecting the facts or data, analyzing the facts and
reaching certain conclusions either in the form of solutions towards the
concerned problem or in certain generalizations for some theoretical formulation.
A system of models, procedures and techniques used to find out the
results of a research problem is called a research methodology. The research
process includes the following steps:

Problem definition

Objective of the research

Research design

Data collection

Data analysis

Data interpretation

Validation of results

1.Primary Data:
Tools for collecting the primary data are as follows Structured questionnaire
Survey and observation
Interview Method

2. Secondary Data:
Sources for collecting the secondary data are as follows Books
Websites
Company reports and records

Methodology Used:
1.Pre- research
Parameters for employee retention were listed.

2. Preparing a structured questionnaire

2.9 PROBLEM THAT I FACED DURIND MY RESEARCH

WORK

Collection of data Vijay Solvex Ltd was a typical process, as I had to

search the website, newspapers, magazines and company reports.

Collection of questionnaires for this research work was not an easy task.

Employees were not giving answers easily due to of its confidential

information.

I tried so many times branch managers and other employee to get ther
responses.

First time the branch manager was not giving me the permission to take
interviews of their employee.

To solve the research problem is not an easy task but the suggestions of
my guide and corporation of staff and my friends and my literature
knowledge provide me the valuable result of my research problem.

COMPANY PROFILE
Vijay Solvex Ltd is the flagship company of Edible Oil Division of Data Group of
Industries. The major products which it manufactures and markets are Mustard
Oil

(Kachchi

Ghani

and

Pakki

Ghani),

Vanaspati

Ghee,

Refined

Soybean/Mustard oil and Salt under the famous SCOOTER brand ,Fine Bone
China Tableware, Ceramic Gift items, High Tension Porcelain Insulators, Wind
Power, Internet and IT Services and Software.
The group also invests in Horticulture and Real Estate The products are
synonymous with excellent quality and are available nationwide.

Data Group is an Indian MNC with vested interests in Asia, Europe and the US.
Started in 1978 with a small oil mill (extracting mustard oil), the group stands
today at US$ 200m in just 3 decades The synergy lies in corporate philosophy of
serving the society through quality products and services at competitive price.

Long term planning and seeing the market well ahead of time are the corner
stones to DATA Groups success in this globally competitive economy.

Company Name :

Vijay Solvex Ltd.

Address: Bhagwati Sadan Swami Dayanand

Marg
Alwar, Rajasthan, India.
Zip / Postal Code : 301001
Telephone: 0144 - 332321 / 332358
Fax 0144 - 332320

Description Contact: Mr. Vijay Data, Mg.

Director

3.1 DATA GROUP

Data Group is an Indian MNC with vested interests in Asia, Europe
and the US. Started in 1978 with a small oil mill (extracting mustard
oil), the group stands today at US$ 200m in just 3 decades The
synergy lies in corporate philosophy of serving the society through
quality products and services at competitive price. Long term
planning and seeing the market well ahead of time are the corner
stones

to

DATA Groups

success

in

this

globally

competitive

economy.
Data Group manufactures and markets array of products such as
Mustard

oil,

Vanaspati

Ghee,

Refined

Oil

(Mustard/Soyabean),

Ground Nut Oil, Iodised Salt, De-Oiled Cake (DOC), Oil Cake, Fine
Bone China Tableware, Ceramic Gift items, High Tension Porcelain
Insulators, Wind Power, Internet and IT Services and Software. The
group also invests in Horticulture and Real Estate.

3.2 DATA INFOSYS LIMITED

Established in 1999, Data Infosys Limited, a

ISO-9001
leader

in

company,

is

Internet

India's

services,

pioneer

&

Application

services, Project design and development,

Wireless

solutions

and

Call

Center

operations with services broadened to meet

the all time business and technology needs
of
As

leader

in

today's

Internet

solution,

global
we

offer

environment.
ISP

services

to

revolutionize the way people use Internet to communicate, conduct

business, gain information, and carry out transactions. We have
carved

niche

for

ourselves

in

the

competitive

information

technology world and are successfully offering services to more than

lakhs*of internet subscribers in India and abroad. Our vision is to be
a

value-based

global

organization,

providing

customer-centric

solutions to the highest standards of excellence, creating value to

all stakeholders. We are propelled by the philosophy of pride in
service, competence in enterprise, integrity in competition and
synergy in action.

Presently

we

management

are
Call

running
Center

complaint
for

Jaipur,

Ajmer and Jodhpur Vidyut Vitaran Nigam

Limited.

We

managing

the

are
call

also

manning

center

for

and

Bharat

Sanchar Nigam Limited (BSNL), Number

one telecom company in India, for the state of Rajasthan &
Uttaranchal

serving

around

million

consumers.

We also pioneer new social entrepreneurship ventures in North India

as we want to be in the forefront and bring positive changes in the
world.
Services provided by the company include DSL (Digital Subscriber
Line) and leased circuits. The company also has valuable solutions
for VPN

(Virtual Private

Network),

Extranet, Internet, Network

Solutions and e-commerce including payment gateways. It has VOIP

(Voice Over Internet Protocol), WAP (Wireless Application Protocol),
UMS (Unified Messaging Services), Call centers and Transcriptions.

3.3 DATA INFOCOM LIMITED

Data Infocom Limited is the awardwinning
focused

software
on

solution

provider,

improving

business

collaboration and communication tools

available to organizations. We are a
service

oriented

turnkey

company,

solutions

for

providing
balancing

excellence and efficiency in the most cost effective manner. We

believe in inventing the future, rather than predicting it. We discover
the ways in which we can organize our strength into compelling
power and serve organizations constantly with their IT needs. Our
expertise lie in the area of helping organizations design and
implement the highest grade communication systems. DIL has
developed

unique

components

in

and

leading

edge

high-performance,

products

that

high-availability

are

and

key
high-

reliability for our customers. Some of our revolutionary products

are :
XGEN Plus :

The most advanced email server in the world

today.
SpamJadoo
XBand

:
:

Ultimate spam protection.

The Bandw idth management system.

3.4 DIVISONS OF VIJAY SOLVEX LTD.

DIVISON

Edible oil
Ceramic

Wind power

Real estate

Horticulture

CERAMIC DIVISION

In 1992, DATA Groups flagship company

M/S Vijay Solvex Ltd. took over The
Jaipur
located

Glass

&

centrally

Potteries
in

Jaipur,

Works

Ltd

Rajasthan.

Once merged, it came to be known as M/S

Jaipur Glass & Potteries (an ISO 90012000 certified company).

It is one of the leading players in the emerging

Indian Retail sector and is a preferred supplier to
major retail stores in India. It is exporting its
products to countries like U.K, Germany, Hungary,
Middle East, Srilanka, US etc.
To extend its presence over seas, Data Group
established

Data

Housewares

Limited,

at

Birmingham .U.K.

HORTICULTURE
To

encourage

Data

Group

horticulture,

the
is

Agro

activities,

engaged

agriculture

and

in

social

forestry at modern farms located in

Alwar

and

group

is

Madhya

now

Pradesh.

planning

to

go

The
for

biodiesel through Jetropha plantation.

REAL ESTATE
Under another diversification program, the
group took over a project of shopping
complex called DATA ARCADE in the heart
of Alwar (the city of Parks). Mosts shops
have been sold as offices and shops for
MNCs.

POWER GENERATION
Data

Group

is

commited

to

snergic

advantage and operating cost economy to

compete to the global competition. Under
this

vision

in

March

2002,

the

groups

flagship co. M/s Vijay Solvex Ltd installed

wind

energy

generators

in

Jaisalmer

(Rajasthan) district. The power generation

through windmill has contributed for the
exploitation

of

natural

resources

without

burning any fuel and therefore maintains

pollution

free

environment.

Subsequently,

the group has commissioned more energy

generators which as of today has 16 generators producing 3.68 MW
of electricity.

EDIBLE OIL DIVISION

Data Group has seven distinctive edible oil processing complexes.
They can be classified as Integrated oil seed processing complexes
and Oil Mills. Vijay Solvex Ltd (VSL) and Raghuvar India Ltd (RIL)
are

the

groups

complexes.

two

Several

modern

integrated

modifications

and

oil

seed

expansion

in

processing
production

capacity of VSL has been made over the years. Seeing the demand
and supply, RIL was acquired in 2004 from Turner Morrison group.
Products

of

both

complexes

include

Vanaspati

Ghee,

Soyabean/Mustard Refined oil, Mustard Oil and De oiled Cake

(DOC). Data Foods (Srilanka) produces Bakery Shortening and
Vanaspati Ghee. The group is the largest producer of mustard DOC
in India.
The group has four independent oil mills located in the mustard
growing belt of Rajasthan. Groups first plant was an oil mill
established in 1978 at Khairthal, M/s Vijay Industries. The mills
produce high quality mustard pungent oil which is rich in aroma and
flavour. The group is one of the largest producers of mustard oil in
India.

Data Group has been smart in assessing

Current consolidated production

the edible oil consumption pattern in the

capacity:

country. Considering the ever increasing

Vanaspati Ghee | 300TPD

per capita edible oil consumption, its

Refined Oil | 100TPD

planning

Solvent Extraction | 700TPD

to

further

enhance

the

production capacity. The current capacity

is :

Oil Mill | 200TPD

In India, most brands are regional in nature and serve the local
market. We at Data Group, see this as an opportunity to grow at
national level. Efforts are being made to market our brand nation
wide with strong focus on creating a robust distribution network.

3.4 BRANDS OF VIJAY SOLVEX LTD

BRANDS

SCOOTER

ASHOKA

HANUMAN

3.5 PRODUCTS OF VSL

MUSTARD OIL
SCOOTER

brand

Pure Mustard Oil

is

cold

from

pressed
traditional

kolhus
gives

which
Kachchi

Ghani

flavour

and natural pungency. Mustard oil has lowest level of saturated fats,
high content of MUFA and moderate content of PUFA. World wide
there is a preference to use oil extracted at low temperature which
retains Omega 3, omega 6, Vitamin E and natural antioxidants.

VANASPATI:
SCOOTER brand
Vanaspati
is

made

Ghee
from

hydrogenated
vegetable oils. Is
white and grainy
(danedaar)

in

texture and is favored for deep-frying and making sweets and

snacks. The product is fortified with vitamin A & D for health
benefits.

SOYABEAN REFINED OIL

SCOOTER

brand

Refined

Soyabean

Oil

light

is

good
This

for
Oil

and
health

contains

good

amount

PUFA

and

of

MUFA

which

are

considered essential for the human body. Soybean oil is dominant

vegetable oil used in households across the world.

MUSTARD REFINED OIL

SCOOTER brand Refined

Mustard Oil is of made from
homeit light oil for cooking.

GROUND NUT OIL

Groundnut oil is an
all

purpose

oil

made from peanuts.

It is generally used
for it for its nutty
flavor and taste. It
The oil is suitable
for

all

types

of

cooking- frying , grilling and seasoning. Studies have shown that

groundnut oil is just as effective in protecting against heart disease,
as is olive oil. This is because it has similar properties and a similar
fatty acid composition, as does olive oil.

IODISED SALT
Under

Data

diversification

Groups

program,

M/s

Saurabh Agrotech (P) Ltd, Alwar

has

started

marketing

of

Refined, Free flow and Iodised

salt

through

infrastructure.
(compound

its

existing

Iodised
of

sodium

Salt
and

chlorine) helps to remedy iodine deficiency in body and helps to

maintain good health. The salt is packed at Gandhidham and is
gradually increasing its market share.

3.7 LOCATION AND PLANTS

LOCATION AND PLANTS

WE DEFINE OUR GROWTH BY PRACTICE
DATA Group is well diversified into Food Processing (edible oil), Ceramics, IT
and Power Generation.
The Group members are:
Year of
Establishment

Name of the
Company

Division

2006

Data
Infocom Ltd

IT/Software

Jaipur (Raj)

Software
Development

2005

Data Foods
(P) Ltd

Edible Oil

Srilanka

Bakery
Shortening /
Vanaspati

Edible Oil

Jaipur (Raj.)

Integrated
Edible oil
processing
complex:
Solvent
Extraction:
De Oiled
cake (DOC),
Vanaspati,
Refined oil,
Mustard oil
and Wind
Power

Edible Oil

Jobner
(Jaipur, Raj.)

Oil Mill:
Groundnut
oil, Mustard
oil and cake

Ceramics

Birmingham,
UK

Import /
Export and
marketing of
FINE Bone
China
Crockery

Edible Oil

Alwar (Raj.)

2004

Raghuvar
India Ltd

2003

Goenka
Products
(a unit of VSL)

2002

2001

Data
Housewares
Ltd

Saurabh
Agrotech
(P) Ltd

Place

Products

Oil Mill:
Mustard Oil
and cake;
Iodised salt

and Wind
Power

1999

Deepak
Vegpro (P)
Ltd

1998

Data
Infosys Ltd

1992

Jaipur
Glass &
Potteries
(a unit of VSL)

1989

Vijay Solvex
Ltd

1978

Vijay
Industries

Alwar (Raj.)

Oil Mill:
Mustard oil
and cake;
Wind Power

Jaipur (Raj.)

Internet
Service
Provider,
Software
Development

Jaipur (Raj.)

Fine Bone
China
Tableware
and H.T.
Insulators

Edible Oil

Alwar (Raj.)

Integrated
Edible Oil
Complex :
Solvent
Extraction
(DOC),
Vansapati,
Refined oil,
Mustard
Oil/Cake and
Wind Power

Edible Oil

Khairthal,
Alwar (Raj.)

Oil Mill:
Mustard Oil
and Cake;
Wind Power

Edible Oil

IT/Software

Ceramics

3.8 BOARD OF DIRECTORS OF VSL

Niranjan Lal Data, Chairman

Niranjan Lal Data is the 70 year old patriarch of Data
Group. His achievements have to be seen in light of India's
recent economic resurgence. Leadership according to him
means motivating others and he inspires awe and respect
though his simplicity. As visionary, he encompasses his 48
years of rich experience in oil industry.

Babu Lal Data, Director

Babulal Data brings 32 years of vast, realistic experience,
which steers the Group's strategies. He holds the honor of
being elected unopposed as the President of Khairthal
Vyapar Samiti from 1979 to 2003. He was awarded the
Bhamashah Award by the Governor of Rajasthan. He
shoulders the responsibility of sales, and looks after day to
day operations of the entire Oil division.

Vijay Kumar Data, Director

Vijay Data is the Managing Director of Vijay Solvex Ltd., a
division of Data Group. He guides the Group with intense
intellect and sense of pioneering zeal. His 26 years of
experience in the field of Production, Marketing, Finance,
Purchase and General Administration is thrusting the Group
towards new heights..

Daya K. Data, Director

D.K. Data is a Mechanical Engineer from with 10 years
experience in oil milling and over a decade experience in
ceramic industry. He is independently looking after the
ceramic division of the group. He has widely travelled all
over the world and has a great business acumen which has
assisted the company in achieving new heights.

Deepak Data, Director

Deepak Data is Director (Business Development) of Data
Infocom Ltd. and is looking after day to day operations for
providing Internet Services. He did his Post Graduation in
Computer

Science

from

Leeds

Metropolitan

University,

United Kingdom.

Dr. Ajay Kumar Data, CEO

Dr Ajay Data is the techno savvy Head of Data Infocom
Ltd. He pursued his MBA in Computer Sciences from
Newport University, USA and PhD in Electronic Data
Processing from Netherlands. He also holds a diploma
course in 'System Analysis & Design from Uptron. Credit
goes to him for establishing the first WiFi HotSpot in
Rajasthan.

Saurabh Data, Director

Saurabh Data is Director of Vijay Solvex Ltd. and is
currently assisting Shri Vijay Data in day to day operations
of the company. He completed his BSc. (Hons) Computing
from University of Leeds, U.K.

3.9 COMPOSITION OF BOARD

NAME OF THE DIRECTOR

POSITION

Mr Vijay Data

Executive managing director/

promoter

Mr Daya kishan Data

Executive director/ promoter

Mr Babulal Data

Non-executive director/ promoter

Mr Ramesh chand gupta

Non-executive/ independent
director

Mr Ram babu jhalani

Non-executive/ independent
director

Mr Omprakash gupta

Non-executive/ independent
director

Mr Ramkishore

Non-executive/ independent
director

3.10 ORGANISATION CHART

CHAIRMAN

MANAGIN
G
DIRECTOR

INDEPENDEN
T
DIRECTOR(3)

EXECUTIV
E
DIRECTOR

CHIEF
EXECUTIVE
OFFICER

CHIEF
EXECUTIVE
OVERSEAS

VICEPRESIDENT(
OVERSEAS)

VICEPRESIDENT(
MARKETING
)

COMPANY
SECRETARY

VICEPRESIDNT(M
ERCANDISE)

HEAD
BUSINESS
STRATEGY

CHIEF
EXECUTIVE
FINANCE

VICEPRESIDENT
(TAXATION)

VICEPRESIDENT
MARKETING
(NORTHEAST)

VICEPRESIDENT(
FINANCE)

VICEPRESIDENT(
FINANCE)

3.11 SUMMARY OF EMPLOYEES

SERIAL
NUMBER

PARTICULARS

NUMBER OF
EMPLOYEES

1.

Office employees

70

2.

Employees at factory

500

3.

Employees in marketing
team

80

TOTAL NUMBER OF EMPLOYEES

650

3.11

INDIAN

EDIBLE

OIL

INDUSTRY:

CONSUMPTION
Regional consumer preferences:
Mustard in north-east, central, north and east.

Groundnut in the west

Palm in the central and south

Soyabean in north and central

Sunflower is largely consumed in urban India, in

relatively small quantity.

NET SALES (RS. IN MILLION)

EBITDA MARGIN(RS. IN MILLION)

NET PROFIT(%)

EARNING PER SHARE(RS)

SHARE HOLDING PATTERN

THE OPPORTUNITY

vijay solvex limited is in the business of manufacturing,

processing and marketing of branded mustard and
edible oils.

It is a listed company which is desirous of raising funds

through private placement of equity to investors. The
funds

are

proposed

to

be

utilized

for

funding

acquisitions of manufacturing facilities.

The

company

offers

an

attractive

investment

opportunity in a rapidly expanding branded edible oil

markets.

CONCEPTUAL FRAMEWORK
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 such employees. If a person is not satisfied
by the job hes doing, he may switch over to some other more suitable job.
In todays environment it becomes very important for organizations to retain their
employees. The top organizations are on the top because they value their
employees and they know how to keep them glued to the organization.
Employees stay and leave organizations for some reasons. The reason may be
personal or professional. These reasons should be understood by the employer
and should be taken care of. The organizations are becoming aware of these
reasons

and

adopting

many

strategies

for

employee

retention.

In this section we are going to study about various topics related to employee
retention, why is it needed, basic practices, myths, etc. in detail.

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

Retention

involves

five

major

things:

Compensation

Environment

Growth

Relationship
Support

Employee retention would require a lot of efforts, energy, and resources but the
results are worth it. Compensation constitutes the largest part of the employee
retention process. The employees always have high expectations regarding
their compensation packages. Compensation packages vary from industry to
industry. So an attractive compensation package plays a critical role in retaining
the

employees.

Compensation:
Compensation constitutes the largest part of the employee retention process.
The employees always have high expectations regarding their compensation
packages. Compensation packages vary from industry to industry. So an
attractive compensation package plays a critical role in retaining the employees.
Compensation includes salary and wages, bonuses, benefits, prerequisites,
stock options, bonuses, vacations, etc. While setting up the packages, the
following components should be kept in mind:

Salary and monthly wage: It is the biggest component of the compensation

package. It is also the most common factor of comparison among employees. It
includes
o

Basic wage

House rent allowance

Dearness allowance

City

compensatory

allowance

Salary and wages represent the level of skill and experience an individual has.
Time to time increase in the salaries and wages of employees should be done.
And this increase should be based on the employees performance and his
contribution

to

the

organization.

Bonus: Bonuses are usually given to the employees at the end of the year or
on

festival.

Economic benefits: It includes paid holidays, leave travel concession, etc.

Long-term incentives: Long term incentives include stock options or stock
grants. These incentives help retain employees in the organization's startup
stage.

Health insurance: Health insurance is a great benefit to the

employees. It saves employees money as well as gives them a peace of
mind that they have somebody to take care of them in bad times. It also
shows the employee that the organization cares about the employee and
its

family.

After retirement: It includes payments that an Employee gets after he

retires

like

EPF

(Employee

Provident

Fund)

etc.

Miscellaneous compensation: It may include employee assistance

programs (like psychological counseling, legal assistance etc), discounts
on company products, use of a company cars, etc.

Growth and Career:

Growth and development are the integral part of every individuals career. If an
employee can not foresee his path of career development in his current
organization, there are chances that hell leave the organization as soon as he
gets

an

opportunity.

 The important factors in employee growth that an employee looks for

himself are:

Work profile: The work profile on which the employee is working should
be in sync with his capabilities. The profile should not be too low or too
high.

Personal growth and dreams:

Employees responsibilities in the organization should help him achieve his
personal goals also. Organizations can not keep aside the individual goals of
employees and foster organizations goals. Employees priority is to work for
themselves and later on comes the organization. If hes not satisfied with his
growth,

hell

not

be

able

to

contribute

in

organization

growth.

Training and development:

Employees should be trained and given chance to improve and enhance their
skills. Many employers fear that if the employees are well rained, theyll leave
the organization for better jobs. Organization should not limit the resources on
which organizations success depends. These trainings can be given to
improve many skills like:

Communications skills

Technical skills

In-house processes and procedures improvement related skill

C or customer satisfaction related skills

Special project related skills

Need for such trainings can be recognized from individual performance

reviews, individual meetings, employee satisfaction surveys and by being in
constant

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

services,

et

al.

Employers can also support their employees by creating an environment of trust

and inculcating the organizational values into employees. Thus employers can
support their employees in a number of ways as follows:

 By providing feedback
By giving recognition and rewards
By counseling them

by providing emotional support

Importance of Relationship in Employee Retention

Programme
Sometimes the relationship with the management and the peers becomes the
reason for an employee to leave the organization. The management is sometimes
not able to provide an employee a supportive work culture and environment in
terms of personal or professional relationships. There are times when an
employee starts feeling bitterness towards the management or peers. This
bitterness could be due to many reasons. This decreases employees interest and
he becomes de-motivated. It leads to less satisfaction and eventually attrition A
supportive work culture helps grow employee professionally and boosts employee
satisfaction. To enhance good professional relationships at work, the management
should keep the following points in mind.

Respect for the individual: Respect for the individual is the must in the
organization.

Relationship with the immediate manager: A manger plays the role of a

mentor and a coach. He designs ands plans work for each employee. It is his duty
to involve the employee in the processes of the organization. So an organization

should hire managers who can make and maintain good relations with their
subordinates.

Relationship with colleagues: Promote team work, not only among teams
but in different departments as well. This will induce competition as well as
improve

the

relationships

among

colleagues.

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

proper place and duties for him to perform. Otherwise hell feel useless and will be
dissatisfied. Employees should know what the organization expects from them and
what their expectation from the organization is. Deliver what is promised.

Promote an employee based culture : The employee should know that the
organization is there to support him at the time of need. Show them that the
organization cares and hell show the same for the organization. An employee
based culture may include decision making authority, availability of resources,
open

door

policy,

etc.

Individual development: Taking proper care of employees includes

acknowledgement to the employees dreams and personal goals. Create
opportunities for their career growth by providing mentorship programs,
certifications,

educational

courses,

etc.

Induce loyalty: Organizations should be loyal as well as they should promote

loyalty in the employees too. Try to make the current employees stay instead of
recruiting new ones.

Organization Environment:
. It is about managing people. If an organization manages people well,
employee retention will take care of itself. Organizations should focus on
managing the work environment to make better use of the available human
assets.

People want to work for an organization which provides

Appreciation for the work done
Ample opportunities to grow
A friendly
A feeling that the organization is second home to the employee.

Organization environment includes

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies

Trust

Types of environment the employee needs in an

organization:
Learning environment: It includes continuous learning and improvement of
the individual, certifications and provision for higher studies, etc.

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

Flexible hours

Telecommuting

Dependent care

Alternate work schedules

Vacations

Wellness

Work environment: It includes efficient managers, supportive co-workers,

challenging

work,

involvement

in

decision-making,

clarity

of

work

and

responsibilities, and recognition.

Lack or absence of such environment pushes employees to look for and
new opportunities. The environment should be such that the employee feels
connected to the organization in every respect.

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,

theeffect is felt throughout the organization. Co-workers are often required to
pick up the slack. The unspoken negativity often intensifies for the remaining
staff.

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 leave

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 jobe Leave?
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.

Employee Retention Strategies

The basic practices which should be kept in mind in the

employee
1.

Hire

retention
the

right

strategies

people

in

the

are:
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.
7.
8.

Keep

providing

Recognize
Keep

them
and

feedback
appreciate
their

on

their
their
morale

performance.
achievements.
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.

LOW
Medium

High

Employee Turnover
There are four types of employee turnovers:
Functional turnover: A turnover in which poor performers leave is called
as functional turnover.

Dysfunctional turnover: A turnover in which good performers leave is

called as dysfunctional turnover

Avoidable turnover: A turnover that happens in avoidable circumstances

is called as avoidable turnover.

 Unavoidable turnover: A turnover tha happens in unavoidable

circumstances is called as unavoidable turnover. For eg. Employees death or
spouses

relocation.

Mostly it is said that employee turn over is not good for the organizations. But
employers should remember that turnover is not that bad either. What is required
is an optimum mix of turnover, not too high-not too low. An optimum mix of
employee

turnover

can

help

in

A little rate of employee turnover may result into:

1. Bringing in new ideas and skills from new hires.
2. Better employee-job matches.
3. More staffing flexibility.
4. Facilitate change and innovation.

High rate of turnover may lead to decrease in:

1. Productivity
2. Service delivery
3. Spread of organizational knowledge

many

ways.

Causes

of

employee

turnover

In order to know the cause of excessive employee turnover, the causes of

dysfunctional and avoidable turnover should be known. Few reasons for
dysfunctional turnover may be:

Compensation package differences

Job and employee skill mismatch: the job may be less or more satisfying
and challenging according o the employee.

Inferior facilities, tools, etc

Less recognition

Less or no appreciation for work done

Less growth opportunities

Poor training

Poor supervision

Less work and life balance practices

Attrition Rate
The attrition rate 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.

Attrition rate: There is no standard formula to calculate the attrition rate of a

company. This is because of certain factors as:

The employee base changes each month. So if a company has 1,000

employees in April 2004 and 2,000 in March 2005, then they may take
their base as 2,000 or as 1,500 (average for the year). If the number of
employees who left is 300, then the attrition figure could be 15 percent or
20 percent depending on what base you take.

Many firms may not include attrition of freshers who leave because of
higher studies or within three months of joining.

In some cases, attrition of poor performers may also not be treated as

attrition. Calculating attrition rate:

Attrition rates can be calculated using a simple formula:

Attrition = (No. of employees who left in the year /

average employees in the year) x 100
Thus, if the company had 1,000 employees in April 2004, 2,000 in March 2005,
and 300 quit in the year, then the average employee strength is 1,500 and
attrition is 100 x (300/1500) = 20 percent. Besides this, there are various other
types of attrition that should be taken into account. These are:
Fresher attrition that tells the number of freshers who left the organization
within one year. It tells how many are using the company as a springboard or
a launch pad.
Infant mortality that is the percentage of people who left the organization
within one year. This indicates the ease with which people adapt to the
company.
Critical resource attrition which tell the attrition in terms of key personnel like
senior executives leaving the organization.
Low performance attrition: It tells the attrition of those who left due to poor
performance.

Attrition

Costs

One of the best methods for calculating the cost of turnover takes into account
expenses involved to replace an employee leaving an organization. These
expenses

are:

A. Recruitment cost
The cost to the business when hiring new employees includes the following six
factors plus 10 percent for incidentals such as background screening:

Time spent on sourcing replacement

Time spent on recruitment and selection

Travel expenses, if any

Re-location costs, if any n Training/ramp-up time

Background/reference screening

Training

and

development

cost

To estimate the cost of training and developing new employees, cost of new hires
must be taken into consideration. This will mean direct and indirect costs, and
can be largely classified under the following heads:

Training materials

Technology

Employee benefits

Trainers Time

C.

Administration

cost

They include:

Set up communication systems

Add employees to the HR system

Set up the new hires workspace

Set up ID-cards, access cards, etc.

The following table can be helpful to calculate the cost of employee
turnover per week or per month.

TOTAL TURNOVER COST PER EMPLOYEE

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:

Turnover always happens: Companies who believe in zero attrition

rates only fool themselves. This happens because employees keep on
moving due to reasons like marriage or further education. Nothing can top
these employees frommoving on. So, rather than achieving zero attrition
companies should focus on identifying whom they want to keep so that they
have healthy attrition rate.

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 ideasapproaches, abilities & attitudes which can keep the organization
from becoming stagnant.

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 and efforts, low productivity, loss
of morale, loss of knowledge and so on.

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.

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.

Let us explore some ideas to reduce employee turnover

Hire the best candidate.

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.
Produce quality managers who can really manage employees well.
Provide employees with work schedules that are flexible enough to suit their
needs.

Dont be too demanding. You re hiring human beings who have their own

life and family commitments. Respect them.

Provide career counseling and development.

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.

Take proper feedback from employees regarding their grievances.

Remember your ex-employees. They can be of help in future. It is also a

part of EMPLOYEE RETENTION

Managing Employee Retention

The task of managing employees can be understood as a three stage process:
1.
2.

Identify

cost

Understand

3.

Identify

the

of

why

Implement

the

cost

employee
employee

retention

of

employee

turnover
leave
strategies

turnover:

The organizations should start with identifying the employee turnover rates within
a particular time period and benchmark it with the competitor organizations. This
will help in assessing the whether the employee retention rates are healthy in the
company. Secondly, the cost of employee turnover can be calculated. According
to a survey, on an average, attrition costs companies 18 months salary for each
manager or professional who leaves, and 6 months pay for each hourly
employee who leaves.
This amounts to major organizational and financial stress, considering that one
out of every three employees plans to leave his or her job in the next two years.

Understand

why

employees

leave:

Why employees leave often puzzles top management. Exit interviews are an
ideal way of recording and analyzing the factors that have led employees to
leave the organization. They allow an organization to understand the reasons for
leaving and underlying issues. However employees never provide appropriate
response to the asked questions. So an impartial person should be appointed
with whom the employees feel comfortable in expressing their opinions.

Implement

retention

strategy:

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

reduce employee turnover. The most effective strategy is to adopt a holistic
approach to dealing with attrition. An effective retention strategy will seek to
ensure:

Attraction and recruitment strategies enable selection of the right

candidate for each role/organization

New employees initial experiences of the organization are positive

Appropriate development opportunities are available to employees, and

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

The organizations reward strategy reflects the employee drivers

The leaving process is managed effectively

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 including 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 Bonus

Higher attrition rates within a particular industry have forced companies to use
some innovative strategies to retain employees. Retention Bonus is one of the
important tools that are being used to retain employees. Retention bonus is an
incentive paid to an employee to retain them through a critical business cycle.
Retention bonuses are becoming more common in the corporate world because
companies are going through more transitions like mergers and acquisitions.
They need to give key people an attractive incentive to stay on through these
transitions to ensure productivity.
Retention bonuses have proven to be a useful tool in persuading employees to
stay.
A retention bonus plan is not a panacea. According to a survey, nonmanagement employees generally receive about 10 percent of their annual
salaries in bonuses, while management and top-level supervisors earn an
additional 50 percent of their annual salaries. While bonuses based on salary
percentages are the generally used, some companies choose to pay a flat figure.
In some companies, bonuses range from 25 percent to 50 percent of annual
salary, depending on position, tenure and other factors. Employees are chosen
for retention bonuses based on their contributions to management and the
generation of revenue. Retention bonuses are generally vary from position to
position and are paid in one lump sum at the time of termination. However, some
companies pay in installments as on when the business cycle completes.
A retention period can run somewhere between six months to three years. It can
also run for a particular project. A project has its own life span. As long as the
project gets completed, the employees who have worked hard on it are entitled to
receive the retention bonus. For example, the implementation of a system may
take 18 months, so a retention bonus will be offered after 20 months.

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.

Communication Between Employee and Employer

Communication is a process in which a message is conveyed to the receiver by
the sender. The message may be or may not be in a common format or language
that both the sender and receiver understand. So there is a need to encode and
decode the message in the process. Encoding and decoding also helps in the

security of the message. The process of communication is incomplete without the

feedback.
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.

There are 3 categories of employees:

 A: Who will leave their current employer in 3 years of their employment

B: Who have a probability of leaving their current employer in next 3 years
C: Who will stay with their current employer in the next 3 years

Category A: These are the employees who lack communication with their
employers.

Category C: These are the employees who have proper, well structured
communication

with

their

employers.

Communication is also the way to win the employees trust in the

organization. Employees trust the employers who are friendly and open to them.
This trust leads to employee loyalty and finally retention. Employers also feel that
the immediate supervisors are the most authenticated and trusted source of
information for them. So the organizations should hire managers who are active
communicators.

Communication mediums
Open door policy: Organizations should support open door policies so
that the employees feel comfortable and are able to express their
doubts and feeling to their employers.
Frequent meetings and Social gatherings

 Emails, Newsletters, Intranet and many more

So there should be effective communication across the organization and this
communication should be two-way. Communication alone can lead to
unimaginable heights of employee retention.

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

Positive feedback

and

identify

the

improvement

areas.

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

Negative

minimum

acceptable

level.

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 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:

It builds trust and enhances communication between manager and
employee.
It gives managers and employees a way to identify and discuss skills and
strengths.
Positive feedback leads to employee retention and motivation.
It helps in identifying performance areas that need improvement and
specific ways to improve them.
It acts as an opportunity to enhance performance by identifying resources
for skill development.
It is an opportunity for managers and employees to assess and identify
career and advancement opportunities.
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 demotivate employees and may lead to employee
absenteeism. Input from managers side is necessary as it help employees to
improve their performance and increase productivity.

4.2 Facts and Findings

Training & Development has supported a lot Employee Retention &
various plan & procedure Vijay Solvex Ltd. All Employees are happily
working there so the attrition rate is 1% & retention rate is 99%. This is
very high.
The motivational techniques & many reward procedure is continuously
growing there.
In Vijay Solvex Ltd working pattern is very good & effective so No. of
employee or executives dont want leave the job.
The whole Alwar plant every employee is Growing &contributing company
growth also.

4.3 Analysis and Interpretation

1. Employee Joining this organization:-

Categories
No. of person%

Culture
10

company

working

reputation
85

Environment
60

pay scale
75

any other
30

INTERPETATION:IN Vijay Solvex Ltd. employee are joining the company many reason like: culture,
working environment, company reputation, pay scale& any other reason. Each
employee join this organization differant-2 reasons.

2 The reason of employee leaving this organization:Categories

Opportunity

Working

New job

All of

growth

environment

offer

Appreciation

above

70

40

10

25

No. of
person%

INTERPETATION:IN Vijay Solvex Ltd many employee are leaving this reason, because now days
there are many opportunities in the world. Every person obtain all opportunities.

3 Employees leaving the organization (In theYear):-

% of leaving employee
NO. of person%

INTERPRETATION:

0-5%
5

5-10%
30

10-15%
25

15-20%
60

above 20%
1

In Vijay Solvex Ltd employee leaving the organization. In every year employee
leaving the organization in different percentage.

4 The company motivate the employee:Categories

No of person%

Promotion
Reward policy
75%

60%

Job

Any

All

Training
Rotation
other
Above
2%
10%
5%
40%

INTERPRETATION:
The employee are motivate in different type of motivating factors in thisa company.
Like: reward, job rotation etc. so retention isincrease in these factors.

5 The retention rate in this organization:-

Position
No. of person%

Very Low

Low

High

Very High

10%

5%

70%

15%

INTERPERATION:In Vijay Solvex Ltd we calculate the retention rate. Every employee tell differentdifferrent rate. But in this year retention rate is very high.

6 Satisfied with Development Activities in this Organization:-

Position
No. of person%

Yes

No

90%

10%

INTERPRETATION:

90% employee are satisfied with development activities in this company. 10%
employee are not satisfied . so in this company development activities are better.

7 Comfortable with the company policies:-

Position
No. of person%

Yes
95%

No
5%

INTERPRETATION:
95% employee are comfortable with Companies policy in this company. 5%
employee are not satisfied . so in this company policy is better. every employee is
adopted these policies.

5.1 VSL SWOT ANALYSIS

STRENGTH
Experienced work force100%
Licenses renewed
Compliance madeEffective
licensingSafety Consciousness

WEAKNESSES
Employees turn over
Low capacity utilization
Unorganized labour contractors
Lack of HR development

OPPORTUNITIES
New product development & Better manpower utilization
Benchmarking HR practices
Sharing HR practices with other Locations
Introduction of new HR initiatives

THREATS

Surrounded by sick industries

Closures of about 60% of surrounding industries
Labour cases

5.2 Conclusion
The bird eye view of my project is that in this competitive market human
resources are the major assets of an organization. Therefore, Vijay Solvex Ltd
alwar, India really focuses to find out the effective sources of employee retention.
The researcher has done enough research on sources of employee retention of
the company. The researcher has come up with certain recommendations that
are to be adopted, which on implementation would be beneficial for the company
in long run. There are certain inferences what was found through the project in
the company and are given below Vijay Solvex Ltd alwar is using different sources of retention.
Vijay Solvex Ltd alwar, India prefers to use placement agencies as a
method of retention. Employee also joining the company mainly company
reputation.
Vijay Solvex Ltd alwar, India retain the employees on monthly and yearly
basis as well

as occasionally because when company feels shortage of

manpower in the lower level management, at that junction it retains the

candidates on monthly basis where as shortage of manpower in middle level
management at that point of time retention is done but this situation
comes occasionally.

 Theoretically,The employees always have high expectations regarding their

compensation packages. As soon as they feel dissatisfied with the current
employer or the job, they switch over to the next job. Employee are totallay
different. Employee Retention involves taking measures to encourage
employees to remain in the organization for the maximum period of time.

5.3 Recommendations& Suggestions

1 Recommendation:
On the basis of the research work there are several points, which came as
a conclusion and according to that there are some points which are pointed out
as recommendations, and if company follows these points then company can
effectively recruit and select the candidates and increase the retention of the
employees. These points are given as follows:1. The Company at present is mostly utilizing the source of recruitment by
employee referrals and placement agencies. If the company goes for other
effective sources of retention like job rotation etc., it can get some effective
and efficient candidates for retention.
2. Company should decrease the complexity of the retention procedure for
employees while hiring the candidates for judging their competencies.
3. For selecting the candidates, company should go for some new technical and
creative tests as a compulsory test apart from the aptitude and trade test for
the employees.
4. At present the probation period in Vijay Solvex Ltd , ALWAR is up to six
months. It is advisable for the company that people at the different post
should be given different probation period.

5. should go for some new technical and creative tests as a compulsory test
apart from the aptitude and trade test for the employees.
6. At present the probation period in Vijay Solvex Ltd, ALWAR is up to six
months. It is advisable for the company that people at the different post
should be given different probation period.

2 Suggestions:
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.

5.4 Appendix
Annexure
Questionnaire
Gender: M/F
Name.
Department Name..
Ques.1 What is Retention?
(A) Sustain
(B) Growth
(C) Relationship
(D) All of above
Ques.2 Why did you join this organization?
(A) Culture
(B) Company Reputation
(C) Working Environment

(D) Pay Scale

(E) Any Other Reason

Ques.3 What are the employee involvement activity?

(A) CFT (Cross Functional Team)
(B) RISE {Reward for individual service excellence (Integrated)}
(C) Suggestion Scheme
(D) All of Above
(E) None of these

Ques.4 Why are employee living this organization?

(A) Opportunity Growth
(B) Working Environment
(C) New Job Offer
(D) Appreciation
(E) All of above

Ques.5 Are you Satisfied with Development Activities in this Organization?

(A) Yes
(B) No
Ques.6 What is Attraction Point to Join this Company?

(A) Compensation
(B) Brand Name
(C) Facility
(D)Career Growth
(E) Leading Technologie
(F) All of Above

Ques.7 What is the retention rate in this organization?

(A)Low
(B) Very Low
(C) High
(D) Very High

Ques.8 What is the Attrition rate in this organization?

(A)Low
(B)Very Low
(C)High
(D)Very High

Ques.9 Are you Comfortable with the company policies?

(A) Yes
(B) No

Ques10 What is the method of evaluating performance in the company?

(A) 360*
(B) 90*
(C) 180*

(D) All of above

(E) None of these

Ques.11 Basically how long is the measurement period of retention in this

organization?
(A)Weekly
(B) Monthly
(C) Yearly
(D) Quaterly

Ques.12 Which is the Area is measured for employee performance in company?

(A) Job analysis
(B) Achievement
(C) Employee loyalty
(D) Communication skill
(E) All of above

Ques.13 Is there any training policy or weather any development policy?

(A)Yes
(B) No
Ques.14 How is the Training policy in this the organization?
(A) Good
(B) Very good

(C) Can be better

(D) Excellent

Ques.15 Which type of training are conducted in this organization?

(A) Technical
(B) Behavioral
(C) On job training
(D) Off the job training
(E) All of above

Ques.16 How many employee are satisfy with their job in this organization
(In the Year )?
(A) 0 to20%
(B) 20 to 40%
(C) 40 to 60%
(D) 60 to 80%
(E) Above 80%

Ques.17 How many employees are leaving the organization?

(A) 0 to 5%
(B) 5 to 10%
(C) 10 to 15%
(D) 15 to 20%
(E) Above 20%

Ques.18 How do the company motivate the employee?

(A) Reward
(B) Promotion policy
(C) Training
(D) Job Rotation
(E) Any Other Reason

Ques.19 Which is the area of improvement in this organization?

(A) Working environment
(B) Pay Scale
(C) Job Satisfaction
(D) Reduced absenteeism

(E) Any Other Reason

Ques.20 What type of Programme enhance the employee retention?

(A)Training facility
(B) Recreation facility
(C) Job security
(D) Any Other Reason
Please specify:

Ques.21 What are the Welfare facilities provided by the organization?

(A) Canteen
(B) Medical Facility
(C) Healthcare
(D) All of Above

Ques.22 Do You want to give any suggestion for this organization?

(A) Yes
(B) No

If yes, Which Suggestion do you want to give in this organization?

..

Ques.23 What type of programme should be conducted to reduce employee

attrition?
(A)Job security
(B) Training
(C) Recreation facility
(D) Development programme

(E) Monitory

Ques.24 How does the organization can provide support in form of work lifebalance to reduce the retention rate?

(A) Flexible hours

(B) Telecommuting
(C) Dependent care

(D) Alternative work schedule

Ques.25 What should be the basic practices while deciding employee retention
strategies?
(A)Hire the right people.
(B) Empower the employee.
(C) Make employee as an asset.
(D) Have faith in them.
(E) Provide them knowledge
(F) All of the above

Ques.26 If you become CEO of company what will you do?

-----------------------------------------------------------

5.5 Bibliography
I got all the information regarding the study of Recruitment & Selection with
written proofs from the following references.

Books:
HUMAN RESOURCE AND PERSONNEL MANAGEMENT by
K.Aswathappa
HUMAN RESOURCE MANAGEMENT by Gary Dessler
HRM & IR by P Subba Rao

Manuals:
HRD MANUAL

Websites:
www.google.com
www.hrfactor.com
www.hrguide.com
www.hrtrends.com
www.ashokleyland.com

5.6Synopsis:-

NAME OF THE PROJECT:

Employee

Retention

Strategy

of

Vijay

Solvex

Ltd.

NAME OF THE ORGANISATION:

VijaySolvexLtd.

OBJECTIVE:
To analyze the HR Process and operations of Vijay Solvex Ltd...
Objective of this project is to understand the How to retain the
employee in a Vijay Solvex Ltd. and to know that where the stand
Vijay

Solvex

Ltd.

Edible

Oil

Division

in

the

Market.

RESEARCH METHODLOGY:
The

methodology

adopted

is

preparing

some

structured

questions and asked these questions to number of respondents,

which includes marketing, HR, finance managers, etc... Questions
are also asked to various officers in plant.
Besides,
considered

informal
as

interactions
a

part

with
of

individuals
the

are

also

research.

SOURCESOFDATA:

(i) PRIMARY

- Respondents

( ii) SECONDARY - Company brochures and manuals, Internet

etc.

Guide: - Mr. Yash Saini