A

PROJECT REPORT
ON

EMPLOYEE RETENTION
Undertaken at
ABB LIMITED, FARIDABAD
Submitted towards partial fulfillment of the requirement for
the award of the degree of

Master of Business Administration

Of
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
(Session 200507)
Submitted to:
DR. HARIOM SHARMA
Faculty (HR)

Submitted by:
TARUNA VERMA
MBA (3RD ) Semester

INSTITUTE OF MANAGEMENT & TECHNOLOGY

(Approved by AICTE, Govt.of India & Affiliated to M. D. University, Rohtak)
(AN NBA - ACCREDITED INSTITUTE)
Near Sai Dham, Tigaon Road,
Faridabad 121002
Tel: 0129-2370185, 3096395, 2229137

ACKNOWLEDGEMENT

The most important task of report writing is expressing my sincere thanks and gratitude
to all those from whose guidance, co-operation and sincere advice I am able to complete
the study and made it possible for this report to be in your hand today.
I wish to acknowledge my thanks to supervisor and project guide Mr. Gaurav Thakral
(AVP,ABB-MCBS) under whose guidance, I had encouragement throughout the study
and without whose guidance and constant support this project could not have been
success. I would also like to thank Prof. Hariom Sharma, Mrs. Manpreet Kaur
(Faculty, IMT) who gave me specific tips to proceed the project from their busy
schedule. Their constant guidance helped me in knowing more about technical aspect as
well as business aspect.
Finally I would like to place a word of appreciation on record for all those who have
directly or indirectly help me for the successful completion of this project.

(TARUNA VERMA)

PREFACE

Project report exposes to functional areas of management & also provides an opportunity
to be a part of the real corporate world.
This project was given to me with a view to study the actual operation of the company.
Work to be done was to find out the problems in the Employee Attrition functions and
suggest areas of improvement wherever needed by direct survey of the employees. A
survey was conducted with some Payroll employees not contracted (Middle level
management) of ABB INDIA LTD. The information was obtained from various
departments of the organization like MCBS, PTPY, PTPS, EBOP, RN, Services,
Turbocharger and Instrumentation.
AREAS COVERED ARE:
1. Competitive Compensation & Benefits
2. Sound Organizational Structure
3. Leadership & Motivating Work Environment
4. Recognition, Respect, Achievement & Rewards
5. Employee Empowerment, Self development & Creativity
6. Economic Security (or Wealth)

TABLE OF CONTENTS
S.NO.
1
2
a)
b)
3
a)
b)
d)
e)
4
a)

CONTENTS

PAGE NO.

Chapter-1
Industry profile
Chapetr-2
Company profile
Human Resource Function in ABB
Business Ethics & Integrity
Chapter-3
Objective/Scope of the study
Rationale/Focus/Limitations of the study
Hertzberg Two Factor Theory
KEis Employee Retention Wheel
Chapter-4
Introduction of Topic
Meaning

5-17
18-31
32-34
35-37
39-40
40-42
43
44
45-46
47-48

Need, Challenge, Steps

49-57

Strategies, HR Update

58-66

Employee Retention through Employee

Engagement
Chapter-5
Research Methodology
Chapter-6
Data Analysis And Interpretation
Chapter-7
Findings
Conclusion
Suggestions
Bibliography
Annexure
Questionnaire

67-70

5
6
7
a)
b)
c)
d)
e)

71-73
74-81
82-84
85-86
87-88
89-90
91-95

"ABB is global leader in power and automation technologies that enable utility and
industry customers to improve their performance while lowering environmental
impact. The ABB Group of companies operates in around 100 countries and
employs about 104,000 people.

FACTS ABOUT ABB:

Headquarters : Zurich, Switzerland

Orders in 2005 : $23.6 billion

Revenues in 2005 : $22.4 billion

Listed on Stockholm, Swiss & New York Exchanges; traded on Virt-X

120 YEARS OF TECHNOLOGICAL LEADERSHIP

The history of ABB goes back to the late nineteenth century, and is a long and illustrious
record of innovation and technological leadership in many industries.
Having helped countries all over the world to build, develop and maintain their
infrastructures, ABB has in recent years gone over from large-scale solutions to
alternative energy and the advanced products and technologies in power and automation
that constitute its Industrial IT offering.
There are many innovations that ABB has brought to the world in the past 120 years. The
company works with customers to engineer and install networks, facilities and plants
with particular emphasis on enhancing efficiency and productivity for customers that
source, transform, transmit and distribute energy.

A BRIEF HISTORY OF ABB

ASEA + BBC = ABB:The ABB Group was formed in 1988, when the ASEA AB of Sweden and BBC Brown
Boveri Ltd. of Switzerland merged under the name ABB- Asea Brown Boveri Ltd.
Asea(Allmanna Svenska Elektriska Aktiebolaget) was founded in January 1883
byLudwig Fredholm,a Stockholm entrepreneur and BBC Brown Boveri was founded in
1891 by Charles Brown and Walter Boveri.This new company was to be owned on a
50/50 basis by Asea and BBC Brown Boveri.
Utilizing production plants in many countries, the merged group made most of the
advantages of international specialization and became the worlds leading supplier in the
$50 billion electric power industry. At that time ABB controlled as much as a third of
Europes business and more than 20 percent of the world market. It successfully
integrated 850 subsidiary companies and 180,000 employees operating in 140 countries.
ABBs technology competence, broad application know-how and global presence offer
Customers easy access to leading electrical engineering and industry automation
solutions and systems. As one of the worlds most global and dynamic companies, ABB
is unique in its multicultural environment and attitude. It is committed to attracting and
retaining dedicated &skilled people and offer to employees an attractive working
environment & excellent development opportunities.

ABB INDIA HISTORY

The Company was incorporated on 24th December 1949 as Hindustan Electric Company
Limited. In 1965, the Companys name was changed to Hindustan Brown Boveri Limited
(HBB). Pursuant to the Scheme of Amalgamation of Asea Limited with HBB with effect
from 1st January 1989, the name was further changed to Asea Brown Boveri Limited
(ABB) with effect from 13th October 1989.
ABBs power generation business was globally transferred into the new 50-50 JV with
Alstom in 1999. In India the power generation business has been demerged and
transferred to ABB Alstom Power India Ltd. with effect from 1st April 1999. In
consideration of the transfer of the power business, each shareholder of ABB has been
allotted one share in ABB Alstom Power India Ltd. for every share held in the company.
CAPITAL STRUCTURE:
The Authorized Share Capital of the Company is Rs.500,000,000 and the paid-up share
capital of the Company as at the end of the financial year ended 31st December 2005 is
Rs.414,183,560, consisting of 41,418,356 Equity Shares of the face value of Rs.10 each.
ABBs origins in India go back several decades, when Asea set up as an agency in 1928.
INDUSTRY CATEGORY :For more than 100 years, ABB and its predecessor companies have set the pace for
innovation in technologies to harvest energy, improve productivity and safeguard the
environment, increase profits, and more. ABB companies are in the following field:

Automation

Building

Cement, minerals and mining

Chemical

Commercial and industrial buildings

Consumer

Electric utilities

Foundry

Gas utilities

Life sciences

Manufacturing

Marine and turbo charging

Metals

Oil and gas

Pharmaceuticals

Power generation

Power transmission & distribution

Printing

Refining

System integrators

Tele and data communication

10

ABB deliver their products and expertise through channel partners such as original
equipment manufacturers, engineering, procurement and construction firms, wholesalers
and distributors.

A LEADER IN ALL MAJOR MARKETS:ABB enjoys leading positions in all major markets in the world, including growth
markets such as China and India. It is profiting from ongoing power infrastructure
development in the U.S. and Middle East. Their automation technologies business has
recorded strong growth in the oil and gas industry, metals, minerals and marine sectors.
They directly benefit from their global operations and supply footprint which allows them
to lower the cost of their products. Their robotics division, for example, is now based in
Shanghai close to key customers and a booming automotive market. But, at the same
time, they still rely on the more mature markets of Europe and North America for sales in
their traditional regions and technology development.
Maintaining market leadership also depends on a continuing commitment to R&D and
technology innovation. In 2005, they spent $960 million on research and order-related
development in their two divisions a six percent increase over 2004.
ABB MISSION As one of the worlds leading engineering companies, We help our customers to use
electrical power effectively and increase industrial productivity in a sustainable way.
ABB VISIONABB delivers attractive profitable growth by providing leading power and automation
technologies to customers throughout the world. We help them to improve their

11

Performance and productivity as well as to save energy and lower environment impact.
Innovation and Quality are the key characteristics of our product and service offering. We
built on long lasting and value creating partnerships with customers and suppliers.
By 2009, ABB will be recognized as top global engineering company in term of
market impact, growth and profitability, Value creation, Sustainability and Ethical
behavior.
STRATEGY
Build on our leadership in power and automation technologies for utility and industry
customers.
CUSTOMERS
The customers are the heart of our business and all our actions must lead to delighting
them.
PEOPLE
Leadership based on respect for value, trust &accountability Say what we mean, mean
what we say.
CULTURE
Shared Intentions Our ABB, open communication & dialogue, fast decisions,
execution, disciplined culture, acting in overall interest of ABB.
GOALS
Our goal is to create value for our stakeholders by meeting the needs of our customers,
employees & the communities where we do business.

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STRUCTURE
Slimmer structure reduces complexity and reflects focused portfolio.

ABB BUSINESS PRINCIPLES:1. Responsibility

Accountability

Delivery

Continuous improvement

2. Respect

Leadership

Professionalism

Commitment

3. Determination

Profitability

Quality

Technology/Innovation

BRAND PILLARS:Leading - edge technology; Pioneering spirit; at home everywhere

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ABB GROUP BUSINESS STRUCTURE

Global Outlook
ABB TECHNOLOGY AT WORK AROUND THE WORLD:1. UNITED STATES
2. MEXICO
3. BRAZIL
4. FINLAND AND ESTINO
5. GERMANY
6. SOUTH AFRICA
7. RUSSIA
14

8. INDIA AND CHINA

9. AUSTRALIA

ECONOMIC OUTLOOK:The geographical distribution of consolidated orders in 2005, 2004 and 2003 was
approximately as follows:

The geographical distribution of the consolidated revenues in 2005, 2004 and

2003was approximately as follows:

The following table presents supplemental information on key data for ABB and
new organizational structure that took effect as of January, 2006.

15

16

17

18

ABB INDIA

19

INTRODUCTION:(Ranked 71 in FE 500 listing)

(Ranked 22nd in ET 500 listing)
(Star MNC of 2005 & Top NIFTY Performer)
ABBs vision is to be The Value Creator. Working closely with the customers,
understanding their business needs and local market conditions, they ensure their
Customer's success through their innovative products, systems, services and complete
solutions; combining world-class technologies, proven expertise and strong local insight.
Inturn, customer's success is echoed as Value for their stakeholders i.e. shareholders,
employees and the communities in which they operate.
ABB India serves utility and industry customers with the complete range of ABBs
offerings. The company has a vast installed base, extensive local manufacturing at 8 units
and a countrywide marketing and service presence. As a strategic thrust to standard
products business, ABB has a national channel partner network, which ensures
geographical reach and penetration of its products and services.
ABB considers INDIA as a high priority focus country and is committed to
expanding its activities here. There will be an increasing cost migration from the
West to countries such as India. By Fred Kindle (President & CEO, ABB Group)
In order to leverage Indias intrinsic technology strengths and the vast pool of
highly qualified software professionals, ABB has set up a global R&D Center in
Bangalore, which focuses on Industrial IT development and deployment. It also helps
maintain and support range of software intensive products and acts as a partner for the
ABB R&D centers as well as business areas within the group.

20

ABB India has 8 manufacturing units, 26 marketing offices, 8 service centers and 3
training centers across the country. In addition to these, the company has a channel
partner network of around 500 partners to facilitate market penetration for its fast
growing standard products and services business. ABB Indias capital expenditure in
2006 included an investment of US$ 10.9 million.

21

BOARD OF DIRECTORS

Mr.Dinesh Paliwal
(Chairman)

Mr.Peter Leupp
(Director)

Mr.Ravi Uppal
(Vice-Chairman &
Managing director)

Mr.Peter Smits
(Director)

Mr.Nasser Munjee
Mr.N.S.Raghavan
(External Director)
(Director)

Mr.Tom Sioekvist
(Director)

22

ABB BUSINESS IN INDIA :ABB, the world's no. 1 in power technologies, provides utilities, industries and channel
partners with access to a rich portfolio of technologies. Businesses are:1. POWER TECHNOLOGY
2. AUTOMATION TECHNOLOGY
3. BUILDING SYSTEMS

POWER TECHNOLOGY DIVISION IN INDIA

Power Technology Division in India has the following Product and Project Businesses:PROJECT BUSINESSES:

Power systems

T & D Systems, Utility consulting and power system services , HVDC & FACTS

Utility automation

Network

Management,

Substation

Automation,

Plant

Automation,

Communication.
PRODUCT BUSINESSES:

High Voltage Products

HV circuit brakers , Disconnectors, HV Capacitors, Instrument Transformers.

Medium Voltage Products

MV Switch Gears and Substation Automation Products.

Transformers

Power Transformers and Distribution Transformers

23

Utility

AUTOMATIOM TECHNOLOGY DIVISION IN INDIA

Automation Technology Division in India has Product Businesses, Project Businesses

and Manufacturing Automation.

PRODUCT BUSINESSES:

Process Automation

Petroleum, chemical, Consumer, Minerals, Mining, Paper and Metals Industries.

Automation products

Motors, Drives, Power Electronics, Instrumentations, HT Machines, Electrical wiring

Accessories and other low voltage products

Manufacturing Automation

Robotics and related systems for Manufacturing, Consumer and Automative

industries.
BUILDING SYSTEM DIVISION IN INDIA
ABB India offers a single window approach for the entire spectrum of building systems.
Complete building solutions under one roof

Commercial & Industrial Buildings

Infrastructure & Industries

Pharmaceuticals , Biotechnology and Healthcare

Power plants, Marine and offshore

24

LOCATIONS IN INDIA:-

25

ABB PRODUCTS(BRANCHES) IN INDIA

26

27

28

29

Moving Around ABB Objectives

The main objectives of ABB company are:

Value creation

Strategic Business objectives of supplying systems, products, engineering &

services to the regional customers.

Products development( change & improvement based on customers need &

expectations)

Regular system review in accordance with standard and business needs to ensure
its continuing suitability, adequacy and effectivenes

Efficiency gain

Improved transparency and reporting quality

Environment and occupational health & Safety objectives

Enhanced competitiveness

Compliance and internal controls

Based on a group wide shared strategy assigning clear roles and responsibilities
to key stake holders

Using the international assignment procedure to facilitate international transfers

by ensuring consistency and coherence.

HEAD OFFICE/ REGISTERED OFFICE:2ND FLOOR, EAST WING

KHANIJA BHAVAN
49, RACE COURSE ROAD,
BANGLORE- 560001

30

INDIA

ORGANIZATIONAL STRUCTURE

ABB CULTURE
31

CUSTOMERS OF ABB - INDIA :

Reliance Energy

Hyundai

Dr.Reddys

32

Samtel

DMRC

Grasim

ONGC

Tata steel

Balco

Bharat forge

HP Invent

Indian Oil

Hindustan Petroleum

(a) MAJOR HUMAN RESOURCE FUNCTION IN ABB:-

33

(b) HR PROCESS:PERFORMANCE MANAGEMENT SYSTEM:ABBs performance management system is a strategic tool, to facilitate employees to
align their personal objectives and efforts to the organizations objectives. Its a paperless
PMS, which can be accessed through Caf-HR (Employee self service tool)
Caf-HR helps employees to view, create & maintain data any time, anywhere
through their web-browser.
TRAINING AND EVENT MANAGEMENT SYSTEM:ABBs training and event management system is a tool that helps employees to
develop their skills and competencies in line with business needs. The training needs are
both managers recommendations as well as employees self initiatives. ABBs training &
event management is again an online tool accessible through Caf-HR.
INCENTIVE SCHEMES:-

34

The variable pay component (VCTC) of the total cost to company (CTC) for
management staff, reflects maximum earnable amount that an employee can earn based
on performance .The incentive plans, based on which the variable pay is paid out are
follows. There are three kinds of incentive plans that are applicable to management staff:1. Standard Incentive plan
2. Region marketing Incentive plan
3. At Sales Incentive plan

E-RECRUITMENT PROCESS IN ABB:The steps in the e-Recruitment process in ABB are very much relying on the existing
e-HR applications; now in operational use in more then 25 countries.

(b) BUSINESS ETHICS AND INTEGRITY:-

35

BUSINESS ETHICS ARE AN INTEGRAL PART OF ABBS WAY OF DOING BUSINESS :

The business principles of responsibility, respect and determination were formulated to

guide the way ABB employees behave towards each other, towards the customers and
business partners, and towards shareholders and the communities where ABB does
business.
ABB BUSINESS ETHICS AND INTEGRITY :
The credibility and integrity depends on high business ethics standards. All ABB
companies and employees must conform to the relevant laws and regulations of the
countries in which they operate and fulfill their obligations in a responsible manner. They
must insist on honesty and fairness in all aspects of their business and expect the same
from their partners.
The ABB Group subscribes to the basic principles in the International Chamber of
Commerce, ICC, Rules of Conduct, 1999 Revised Edition and the OECD Convention
from 1997.
BUSINESS ETHICS STANDARDS :
ABB expects all its employees to uphold the highest standards of ethical behavior and
integrity.
GUIDELINES :Apply "zero tolerance" to ensure strict adherence to local and international laws
and regulations, as well as to ABB Group ethical standards.
Ensure all ABB business transactions are fully and fairly recorded according to
the company's accounting principles.

36

Ensure continuous training and awareness for employees on how to handle ethical
issues, as well as timely advice and guidance.

Regularly monitor ethical conduct and ensure that accessible systems are in place
for employees or others to report potential violations.

ABB expects from its employees a sound level of allegiance to the Group. This includes
adherence to the Groups non-competition policy by persons possessing significant
confidential information.
The Human Resources Team in India
Their customers are the employees of ABB and their business is to provide solutions and
services to them ontime, everytime ,anytime and to leverage the human capital.
Presenting the HR Team in ABB India.
Vadodara
Bangalore
Corporate Research Centre Bangalore
New Delhi

Anjan Chatterjee

Abhijeet Jain

Manoj Kumar Pathak

Ajay Himanshu

Vijender Singh

Vijay Chaudhary

Ranjani Manjunath

Mumbai
Nashik

37

DEPARTMENTS IN ABB FBD.:1. MCBS (HVAC,IBMS)

2. PTPS , PTPY, EBOP, PTHV, PTUA
3. RN
4. SOX AUDIT
5. SERVICES
6. TURBO CHARGER
7. INSTRUMENTATION
BUSINESS PROCESSES IN ABB FARIDABAD:

Market Strategy & Analysis

Sales & Contract Management

Process planning

Design and Development (Excluded in the scope of certification)

Supply Management
purchasing

Project Management
Order handling
Process validation
Identification and traceability
Control of nonconforming product

Service

Measurement and Monitoring Product/Service

Product and /or service performance
Control of measurement and monitoring equipment

Support Processes
Resource Management (HRM, Information, Infrastructure)

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 Communication and Customer Focus, Document and record control

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INTRODUCTION:-

Employee retention is a major cause of concern today not only in the developed
economies like the US (where a lot of attentions devoted to this issue)also in developing
economies like INDIA. It is expected that by 2010, there would be around 10 million
more jobs than the number of qualified/ skilled people in the job market. Analysts
attribute a combination of factors like retirement of baby boomers and less number of
workers in the age group of 25 to 35 as reasons for this shortage. In a scenario where
getting new people to fill the job vacancies is difficult, retaining the existing employees
become s all the more critical for the HR Managers.
Over two-thirds(70%) of HR managers state that employee retention is a primary
business concern, while 40% of HR managers report an increase in worker turnover
during the past eighteen months. Though HR managers currently find employee retention
a business challenge, long term demographic changes, such as the retiring Baby boomer
population have the potential to aggravate this issue.
With the growth in the economy, acquisition and retention of employees
have become the key challenges for HR managers in INDIA. This issue attributed to the
changing lifestyles, death of motivation, increasing opportunities for assignments abroad
and decreasing loyalty towards the organization. Retention of excellent employees is one
of the most important challenges in organizations today.
In order to address these issues, this study designed to help employers to better
understand turnover and retention challenges. This study confirms that employers view
workforce retention as one of the most critical issues facing them and identifies strategies
& techniques for retaining the best employees while the competition for human talent
escalates.

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OBJECTIVES:

To find out the root cause of existing employee turnover problem and retention needs of
top talent.

To measure the employee overall satisfaction.

To measure current areas of concern and identifies opportunity for Improvement.

Create an implementation plan (strategy) to improve employee

To improve managements ability to hire, motivate and retain staff.

retention.

SCOPE :This project will generate:

New strategies and techniques for retaining the employees in ABB

Identification of the root cause(s) of employee turnover

A summary of retention strategy

An implementation plan to improve employee retention and retention matrices.

Increase the company productivity/Profit.

RATIONALE:Business success is more dependent than ever before on MANPOWER. In
Todays scenario, it is not difficult to search out the Manpower but it s much more
difficult to find & Keep the talented & Skilled Manpower which could be more
profitable for the organization .
In todays turbulent, often chaotic environment, commercial success depends
on employees using their full talent. Now, every organization wants to become a
Leading and Successful Organization in the long run. Its on the grooming way. Every
corporation wants to retain the excellent & skilled employee, issues relating to Selection,
retention & Compensation have become all the more important. Because Employees are

41

like the strongest Brand Ambassadors for every company. Retention of excellent
employees is one of the most important challenge in organizations today.

Hence the rationale behind doing this project is to Identify the root cause of
attrition of employees and managements ability to hire, motivate and retain the staff. So
that it could become the Market Leader with skilled teamwork and could improve the
productivity.
FOCUS AREA:This in- house project shows that employee attitudes are a better predictor of future
employee behavior than past behavior. The Focus area are as follows:

Overall Employee satisfaction towards organization

Employee Loyalty

Work Environment(Teamwork/Real collaborative work)

Workforce Motivation and Engagement

Corporate Culture

Pay , Benefits and Compensation

Supervisor/coworkers Relations

Training & Development

Corporate communications

Employee

Empowerment/Economic

Advancement etc.

42

Security/Respect

and

LIMITATIONS:1. Insufficient data for project work:The sample size is small to reflect the opinion of whole organization.
2. Lack o f Time:The time provided for conducting the study also limited its scope and coverage.
3. Answers given by respondents have been believed to be taken for granted to truly reflect
their desire.
4. Sometimes respondent were quite engaged with their job to provide the assistance.
5. It was difficult to find out the root cause of attrition rate of other organizations
(competitors) due to the absence of reliable source for collecting the data.

43

LITERATURE REVIEW

1. Subsequent research has indicated that actual alternatives are a better predictor of
individual turnover than perceived opportunities. Research on the impact of
unemployment rates as a proxy for actual opportunities in employee turnover
revealed that unemployment rates affected the job-satisfaction/turnover intent
relationship but not actual turnover (Kirschenbaum & Mano-Negrin, 1999).
2. Tang et al's (2000) study confirmed the link between commitment and actual
turnover and Griffeth et al's(2000) analysis showed that organizational
commitment was a better predictor of turnover than overall job satisfaction.
3. Allen & Meyer (1990) investigated the nature of the link between turnover and
the three components of attitudinal commitment: affective commitment
refers to employees' emotional attachment to, identification with and involvement in
the organization; continuance commitment refers to commitment base on costs that
employees associate with leaving the organization; and normative commitment refers
to employees' feelings of obligation to remain with the organization. Put simply,
employees with strong affective commitment stay with an organization because they
want, those with strong continuance commitment stay because they need to, and those
with strong normative commitment stay because they feel they ought to. Allen and
Meyer's study indicated that all three components of commitment were a negative
indicator of turnover.
4. Griffeth et al (2000) found that overall job satisfaction modestly predicted
turnover. In a recent New Zealand study, Boxall et al (2003) found the main reason by
far for people leaving their employer was for more interesting work elsewhere. It is

44

generally accepted that the effect of job satisfaction on turnover is less than that of
organisational commitment.

HERTZBERG TWO FACTOR THEORY:Job Dissatisfaction

Job satisfaction

Working conditions

work content

Pay

Autonomy

Hours

The challenge

Relativity

Achievements

Security

Praise & recognition

Lack of prospects

Responsibility

Poor communication

Good relationship

Poor organizational structure

Lack of direction

(Hygiene factors)

(Motivation factors)

Neither two are related.

No amount of effort in reducing elements related to job dissatisfaction will result
in any changes to job satisfaction & vice versa. E.g. If you increase pay, you will
not improve job dissatisfaction.

45

46

47

THE KEIS EMPLOYEE RETENTION WHEEL:The first step to improving employee retention is to understand why employees stay with
their current organization. Many "experts" dwell on the reasons employees leave, which
is not as important or revealing as the reasons they stay.
Keis Employee Retention Wheel is a tool to measure the core needs that keep employees
successful at their jobs, thus reducing the high costs associated with unwanted employee
turnover.
Controllable employee turnover is cause by only two things: Bad hiring and Bad
treatment. Employers try numerous things to keep good employees. However, studies
show that the programs in the outer two rings do not have as great impact on retaining
employees as the process identified in the center of Keis Employee Retention Wheel.
Employers need to focus on providing supervisors with the tools that implement the
processes at the center of the wheel.

48

49

EMPLOYEE RETENTION
MEANING OF RETENTION:The act of retaining/keeping of a thing within ones power or possession is
RETENTION.

MEANING OF EMPLOYEE RETENTION:The holding/retention of employee in their organization is known as Employee

Retention. In todays changing, competitive and often chaotic environment, the retention
of excellent employee is one of the most important challenge in the organizations.Yet in
spite of the myriad of available theories & practices, managers often view employee
motivation as something of a mystery.
EMPLOYEE RETENTION FACT:
Employee retention is obviously important in a business's
ability to keep the most talented people in the organization and avoid unwanted turnover.

50

NEED OF EMPLOYEE RETENTION:BUSINESS success is more dependent than ever before on people. Strategies can be
copied. Technology can get outdated. Thus, the human capital is getting to be the real
currency of the new economy.
Companies are challenged to work doubly hard to remain competitive to survive. In
meeting this challenge, therefore, organizations need to retain their high performers and
for some, hire individuals who can help bring the organization closer to its goals. Thus,
the "war for talent" might even be more apparent in these tough conditions.
In todays turbulent,often chaotic environment, it is getting more difficult to find and
keep talented workers.Each and every day good employees quit their employers for better
jobs elsewhere. U.S. businesses spend over $200 billion annually recruiting and replacing
their employees. Average organizations spend more money on recruitment and
replacement programs, while good organizations invest in employee retention. Now,
more than ever, it is important to become an employer of choice organization.
Successful organizations realize employee retention and talent management are integral
to sustaining their leadership and growth in the marketplace. Becoming an Employer of
Choice by retaining high-caliber employees in today's labor market should be the highest
priority.
THE EMPLOYEE RETENTION CHALLENGE:In a world where technologies, processes and products are quickly duplicated
by competitors and the pace of change and level of competition are constantly increasing.
People are the key to the most reliable source of advantage better service, increased
responsiveness, strong customer relationships , creativity and innovation that keep a
company one step ahead .
At the same time, however, its getting tougher to hold on to those employees.
Unemployment is at its lowest point in a quarter of a century. Retirement is expected to

51

reduce management ranks by 20% or moreover the next 5 years. Younger, highly mobile
workers are bringing new values and expectations to the workplace, complicating
retention efforts. And after years of turn moil in business, the traditional sense of
company loyalty has disappeared among virtually all employees.
Thus the problem of employee retention is having an impact far beyond front
line managers and beyond even the HR department. It affects the performance of the
entire company meaning that the ability to keep good employees is rapidly becoming a
critical competitive weapon.
WHY EMPLOYEES QUIT THEIR JOB:Employee leave the organization for many reasons: Some leave for better paying jobs elsewhere.
Dissatisfaction in their present job to seek alternative employment.
Due to poor working conditions, Lack of opportunities/Support for advancement,
conflict, Health hazards.
Resolve performance and attitude problems, inadequate compensation.
Others depart because they do not fit the culture.
Many more exit because their managers and supervisors are not properly trained.
However, there are five important areas that motivate people to leave their jobs.
1. Poor match between the person and the job
2. Poor fit with the organizational climate and culture
3. Poor alignment between pay and performance
4. Poor connections between the individual, their coworkers, and the supervisor
5. Poor opportunities for growth and advancement
These five P's can be addressed successfully. Employee retention begins by paying
attention to what causes low job satisfaction as well as what attracts and retains your
workforce.
EMPLOYEE TURNOVER IS EXPENSIVE:-

52

A continual effort to replace departing workersto keep the revolving door full,
instead of stopping it altogetheris bleeding organizations dry. Its expensive to
constantly replace people that turnover. The cost of attracting, recruiting, hiring, training,
and getting new people up to speed is tremendously more costly as well as tremendously
more wasteful than most realize. Just consider these costs:
SAP determined is cost $678,000 in recruiting, training, and missed sales opportunities
every time an experienced sales person quit.
A typical medical center spends over $2 million each year replacing staff members.
High employee turnover is a fact of life these days in many industries. Yet the costs to
recruit and train new employees eat away at bottom line. To stay competitive, its not
only necessary to attract the best possible employees for the job, but develop a clear-cut
strategy to retain them.
PRODUCTIVITY AND PROFITABILITY IS DIRECTLY TIED TO EMPLOYEE RETENTION:-

Studies from the Gallup organization show that employees who have an aboveaverage attitude toward their work will generate: 38 percent higher customer satisfaction scores
22 percent higher productivity
27 percent higher profits for their companies.

53

Thats why the retention of skilled and talented employees is very essential in
organizations today.

54

"Todays work force brings many things to the table, creative thinking, new ideas,
boundless energy and some issues that have not been dealt with in the past.
Continually it is made apparent that employees are not willing to follow in the
footsteps of prior generations. Donna J. Murphy, Senior Vice president, Jefferson
Bank
WHEN DOES EMPLOYEE TURNOVER BECOME PROBLEMATIC?
There is no set level of employee turnover above which effects on the employing
organization become damaging. Everything depends on the type of labour markets in
which we compete. Where it is relatively easy to find and train new employees quickly
and at relatively little cost (i.e where the labour market is loose), it is possible to sustain
high quality levels of service provision despite having a high turnover rate. By contrast,
where skills are relatively scarce, where recruitment is costly or where it takes several
weeks to fill a vacancy, turnover is likely to be problematic from a management point of
view. This is especially true of situations in which they lose staff to direct competitors or
where customers have developed relationships with individual employees as is the case in
many professional services organizations.
Some employee turnover positively benefits organizations. This happens whenever a poor
performer is replaced by a more effective employee, and can happen when a senior
retirement allows the promotion or acquisition of welcome 'fresh blood'. Moderate levels
of staff turnover can also help to reduce staff costs in organizations where business levels
are unpredictable month on month. In such situations when business is slack it is
straightforward to hold off filling recently created vacancies for some weeks.
When executives attempt Employee Selection internally, they often focus on short term
goals, like sales quotas, rates of return, and the like. Unfortunately, this myopic
conception of Employee Selection often leads executives down the wrong path. The truth
is that building a tight ship means hiring the right people. As the saying goes, "Gold in,
Gold out.

55

EMPLOYEE RETENTION:A VITAL STRATEGY:Employee retention is most critical issue facing corporate leaders as a result of the
shortage of skilled labor, economic growth and employee turnover. This project explores
all aspects of the workforce stability issue in the face of unprecedented churning in the
employment market with a focus on retaining their employees. This is one of the hottest
topics for corporate leaders in all fields in the whole world.
Retaining employees means lower training costs and a familiar well established
workforce. Retention requires keeping employees happy, which has other benefits as
well.
Good pay and benefits can, in many industries, be a win-win situation. Employees get
more of what they want, and by minimizing turnover, customers get better service and
shareholders get more profits.

PAST AND CURRENT SCENARIO OF EMPLOYEE RETENTION

The way it wasIn the past, the jobs were considered desirable and sufficient
candidates could be found to fill most critical jobs. Moreover, once employed, workers
would often spend their entire careers in State Service. In areas where there was turnover,
new employees could be recruited easily.
The way it is.today there is a high demand in the public and private sectors for
workers in critical areas such as health care, information technology, engineering,
accounting and auditing. The supply of qualified workers is limited and good workforce
planning requires a twofold approach of aggressive recruitment and innovative retention
strategies. Retention policies need to focus on elimination of unwanted turnover.

56

EMPLOYEE RETENTION IN THE NEW MILLENIUM

Today's labour force is different. Supervisors must take responsibility for their own
employee retention. If they don't, they could be left without enough good employees. A
wise employer will learn how to attract and keep good employees, because in the long
run, this workforce will make or break a company's reputation.
New supervisors must be prepared to be collaborative, supportive, and nurturing of their
people. The old style of "my-way-or-the-highway" style of management is a thing of the
past. Most new supervisors need training to understand what it really takes to retain
employees.
Employee retention involves being sensitive to people's needs and demonstrating the
various strategies in the following five families (Keeping Good People)
1. Environmental
2. Relationship
3. Support
4. Growth
5. Compensation
Employee retention takes effort, energy, and resources...and the results are worth it.

57

STEPS FOR EMPLOYEE RETENTION PROGRAM:There are eight steps for perfecting programs to keep the most talented employees:

Measure and monitor turnover and retention data;

Develop fully loaded costs of turnover;

Diagnose causes and needs for retention improvement;

Explore range of solutions;

Match solutions to needs;

Forecast value of retention solutions;

Calculate ROI of retention solutions; and

Make adjustments and continue.

USING BENEFITS AS AN EMPLOYEE RETENTION TOOL

Employee benefits provide a powerful tool for attracting and retaining top-notch
employees. To design a retention-oriented benefits program, use the following steps:
1. Create a benefits mission statement.
2. Identify your audience and their specific benefits wants and needs.
3. Define a benefits budget that fits within the financial constraints of the company.
4. Give employees as much control as possible over their benefits.
Communicate the plan.
BENEFITS OF EMPLOYEE RETENTION PROGRAM: Save money
Less unwanted tur
58

 Higher morale within a specific department

Ensure continuity of customer service and satisfaction bcoz turnover disrupts the
connection between customers and the company
Improve quality (satisfied employees deliver higher quality products and
services)and remain competitive
Better understanding of whats needed to effectively manage a particular team
High value for a low cost means that with less turnover, fewer problems and more
Productivity occurs. The money saved is significantly greater than the cost.
Satisfied employees contribute to greater business benefits for the employer.
Foremost, businesses would experience an increase in productivity. Happy
employees perform better than disgruntled and stressed ones. Businesses would also
see improved recruitment and retention. Additionally, there would be lower rates of
absenteeism and improved customer service. Overall, there would exist a more
motivated, satisfied and equitable workforce,NELSON,2000
RETAINING KEY EMPLOYEES:By focusing on key players who truly make or break the business, we can get the most
leverage from our employee retention efforts. Retaining key employees requires a fivestep process:
1. Identify key employees and positions.
2. Know what motivates your key employees on an individual level.
3. Provide a deferred compensation plan.
4. Monitor and manage key employee performance/Review key employees annually.

59

STRATEGIES FOR RETAINING THE EMPLOYEES

Today's workers are no longer inclined to stay at one company for the duration of their
careers. The most talented professionals often are courted by other businesses, and the
effects of turnover can be costly. The time and money it takes to recruit, rehire and retain
can quickly cut into a firm's bottom line. Employee Retention Strategies helps
organizations provide effective employee communication to improve commitment and
enhance workforce support for key corporate initiatives.
MAIN FIVE STRATEGIES FOR RETAINING EMPLOYEES:Retaining employees and developing a stable work force involves a two-step process understanding why employees leave in the first place, and developing and implementing
strategies to get them to stay.
Overcoming these reasons requires the implementation of five distinct categories of
retention strategies:
1. Environmental strategies create and maintain a workplace that attracts, retains
and nourishes good people.
2. Relationship strategies focus on how you treat your people and how they treat
each other.
3. Support strategies involve giving people the tools, equipment and information to
get the job done.
4. Growth strategies deal with personal and professional growth.
5. Compensation strategies cover the broad spectrum of total compensation, not just
base pay and salary.

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BEST PRACTICES: EMPLOYEE RETENTION

In building retention programs, there are some more important strategies which exist as
below : A CHANGING WORK FORCE AND WORKPLACE
Fundamental changes are taking place in the work force and the workplace that promise
to radically alter the way companies relate to their employees. Hiring and retaining good
employees have become the chief concerns of nearly every company in every industry.
Companies that understand what their employees want and need in the workplace and
make a strategic decision to proactively fulfill those needs will become the dominant
players in their respective markets.
The fierce competition for qualified workers results from a number of workplace trends,
including:

A robust economy

Shift in how people view their careers

Changes in the unspoken "contract" between employer and employee

Corporate cocooning

A new generation of workers

Baby boomers striking out on their own after hitting corporate ceilings

Changes in social mores

Life balance

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Concurrent with these trends, the emerging work force is developing very different
attitudes about their role the workplace. Today's employees place a high priority on the
following:

Family orientation and Autonomy

Sense of community

Quality of life issues

Volunteerism

Flexibility and nonconformity

To hold the people (employee), its necessary to work counter to prevailing trends
causing the job churning.
CAREER / SELF DEVELOPMENT:It is so important Bcoz employees want to progress. Career development is the
responsibility of employee, but giving a clear line of sight for career growth to the
employee is the employers responsibility. The extent to which the employer assists in
the process improves both the responsibility between the employee and employer and
creates more value for both parties.
The company can encourage this process by:

Sharing information about future business vision and the skill sets that will be
needed.

Mentoring the employee, giving guidance and suggestions.

Facilitating the training that will be paid for by the company.

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 CULTURE AND ENVIRONMENT:It may seem obvious that employees will tend to stay with an organization that makes
them feel comfortable- where stress is minimized , full safety measurement/wellness
occurred. And they feel valued and respected. However , too many companies still
operate with a culture based on control and fear, rather than one that provides well
defined direction and values, and emphasizes care for customers and employees alike.
The implication is clear: The more enriching the work environment, the more likely
to retain a staff of satisfied, productive employees.
To maintain low levels of turnover and high level of employee satisfaction, four types
of culture exists:

Culture of choice

Culture of balance

Culture of care

Culture of development

REWARDS AND RECOGNITION PROGRAMS:(Motivate and retain the most valuable assets)
Employees want to be recognized for a job well done. Rewards and recognition
respond to this need by validating performance and motivating employees toward
continuous improvement. Rewarding and recognizing people for performance not
only affect the person being recognized, but others in the organization as well.
When the reward system is credible, rewards are meaningful; however, if the reward
system is broken, the opposite effect will occur.Unrecognized and nonvalued
performance can contribute to turnover. Recognition for a job well done fills the
employees' need to receive positive, honest feedback for their efforts.
Manager must offer the tangible intrinsic rewards that give value experience,
NELSON,2000.
63

Recognition should be part of the organization's culture because it

contributes to both employee satisfaction and retention. Rewards are one of the keys to
avoiding turnover, especially if they are immediate, appropriate, and personal. A Harvard
University study concluded that organizations can avoid the disruption caused by
employee turnover by avoiding hiring mistakes and selecting and retaining top
performers.
PAY , BENEFITS AND INCENTIVES:Most employees feel that they are worth more than they are actually paid. There is a
natural disparity between what people think they should be paid and what organizations
spend in compensation. When the difference becomes too great and another opportunity
occurs, turnover can result. Pay is defined as the wages, salary, or compensation given to
an employee in exchange for services the employee performs for the organization.
The employee incentive programs help companies to :

Promote employee loyalty and retention

Reward outstanding employee performance

Motivate key employee behaviors: safety, cost savings, wellness, customer

satisfaction, quality, attendance and more

Measure performance improvement

EMPOWERMENT:The employee needs to feel a sense that they are in control of their worlplace options
such as flexible work schedules to give the power of decision making etc.
LEADERSHIP:To a great extent , an employees experience at a company is shaped by his or her Boss:
employees rely on supervisors for everything from communication to promotions and
rewards. Not surprisingly, a number of studies show that ineffective supervisors that is,
bad bosses-are the largest single factor driving employee turnover. Companies need to
64

select the right people for supervisory positions, and then offer them development
opportunities to make sure they continue to enhance their leadership and communication
skills.
PROFESSIONAL GROWTH(TRAINING AND DEVELOPMENT):Todays employee know that a successful career depends on constant
learning and on picking up skills and experience that will make them more employable in
the open market. That means that access to ongoing training and development is
important to them, and a strong incentive to stay with a company.
These programs provide a positive perception to employees that their employer is willing
to invest in their continued professional growth, which will not only have a positive
impact on productivity and effectiveness in their respective roles, but also on the
employer's ability to retain individual employees.This is a fundamental paradox of
employee retention. By preparing people to leave, a company can actually encourage
them to stay.
MEANINGFUL WORK AND OWNERSHIP:People need to know they are making a difference and being effective in their jobs.
Expectations and job responsibilities/description need to be clearly defined so that
employees can understand their rolesand see how their jobs are linked to the
organizations overall success. Employees must also be involved in determining how
work is done, so that they have a sense of ownership and an opportunity to contribute to
improvements in the companys performance.
FAMILY FRIENDLY BENEFITS :Benefits that make it easier for employees to balance work with family obligations have
been shown to increase productivity, reduce absenteeism and lower turnover rates.

65

HR UPDATE
As the leading edge of baby boomers become eligible for retirement, experts believe
that all business sectors will need to become more strategic about Identifying , cultivating
and keeping staff with vital skills.
TOOLS TO TUNE UP RETENTION EFFORTS:Experts suggest following tips: FIND OUT WHAT EMPLOYEES THINK:
A well crafted survey, administered by an outside provider to ensure confidentiality
can be well worth the investment to help a company pinpoint recurring issues that
contribute to employee turnover or dissatisfaction. A more focused approach on this
theme is to identify top performers and invite them to individual discussions on job
satisfaction and career planning.
SET A CLEAR AND CONSISTENT TONE FROM TOP:
In a 2005 SHRM (Society for HRM) workplace forecast 92% of executives said
employee alignment with business goals was important to overall success. However ,
many of those same leaders do not effectively communicate key business objectives or
the non financial elements that makes the company distinctive. The effectiveness of this
step can be measured in regular employee engagement surveys or in smaller focus groups
held on an annual or semi annual basis.
STRENGTHEN THE MANAGER EMPLOYEE RELATIONSHIP:
Retention studies consistently show that the supervisor employee relationship is
one of the biggest factors in whether the worker chooses to stay or leave a job.
CONSIDER FLEXIBLE WORK ARRANGEMENTS:

66

Nearly 60 % of employees in the SHRM study said Work / life practices such as
flextime, telecommuting and compressed workweeks were very important to job
satisfaction.

INVEST IN A CULTURE OF LEARNING:

When times get tough, companies frequently pull back spending on conferences,
seminars and learning opportunities to focus solely on day to day operations.
However, that approach can stifle new ideas, creativity and ultimately lead to worker
burnout.
By taking these steps, the companys ability to keep good workers can be improve
when new opportunities arise.
CONDUCT EXIT INTERVIEWS WITH EMPLOYEES WHO RESIGNS:
Feedback can be used to make positive changes.
ORGANIZATIONAL VISSION AND MISSION AS A CORE DIMENSION IN
EMPLOYEE RETENTION:Mission statements are recognized as a strong management tool that can motivate
employees and keep them focused on the purpose of the organization. Given its
significant and fundamental role relatively little is known about how mission are
perceived by employees and how those perceptions relate to other organizational attitudes
(e.g. satisfaction) and behaviors (e.g. turnover)
In general, the employees expressed positive attitudes towards the mission of the
organization and those attitudes are related to employee satisfaction & intentions to
remains with the organization.

67

REVIEW OF LITERATURE IN THIS REGARD:Developing comprehensive vision & mission statements is seen as critical to success of
organization in all sectors (COLLIUS & PORRAS,1991).
Williams (2002)further suggested that organization with a more comprehensive mission
statement do better financially than those with an ambiguous mission or no mission at
all.
A mission statement identifies, operational objectives, assists in goal directed behavior
of staff, describes performance standards and speaks to organizational survival ( Smith,
Heady, Carson & Carson ,2001)
A good match between employee and organizational values is related to employee
attraction, satisfaction and turnover ( Werbel & Gilliland ,1999)

68

INCREASING EMPLOYEE RETENTION THROUGH EMPLOYEE

ENGAGEMENT:WHAT IS EMPLOYEE ENGAGEMENT:It is as the level of commitment and involvement that an employee has
towards the organization and its values. It is vital to any business organization that seeks
not only to retain its employees, but also to increase their performance level.
ENGAGAMENT is not a one time process or a short term initiative, its an ongoing
and steady progress which requires following initiatives to be taken by organization to
build high levels of employee engagement:

Informing employees about the change

Inviting employees suggestions

Incorporating Valuable suggestions

Listening to problems

Supporting at every stage of the implementation process

WHY IS IT SO IMPORTANT?
EMPLOYEE ENGAGEMENT ensures the successful execution of any business
strategy. Engaged employees are the competitive advantage of an organization and play
the most important role in the implementation of their organizations business initiatives.
There is a significant link between employee engagement and profitability.
DRIVERS OF EMPLOYEE ENGAGEMENT:The survey conducted by Business Today identifies following drivers:

PEOPLE / QUALITY
69

WORK / COMPENSATION

OPPORTUNITIES

FACTORS OF ENGAGEMENT:Many organizational factors influence employee engagement and retention such as:

Empowerment

Fair & appropriate reward recognition & incentive systems

A culture of Respect where outstanding work is valued.

Self development & achievements

Creativity and availability of constructive feedback & mentoring.

Advancement & high levels of motivation and leadership

Economic security (or wealth)

Enjoying coworker relationships affect employee engagement significantly.

HOW TO DEVELOP EMPLOYEE ENGAGEMENT:

Top management endorsement

A work environment to cherish

Innovative leadership

Clear growth trajectories

one step up from commitment

EMPLOYEE DISENGAGEMENT: THE DETERRENT EVIL:It can result in:

Increased employee absenteeism

70

Decreased self esteem

Transferring their gained knowledge and expertise to another workplace

Reduced work performance

Work life imbalance

Wasting time and money invested in training and development programs for the

existing workers.

71

MEASURING EMPLOYEE TURNOVER

Most organisations simply track their crude turnover rates on a month by month or year
by year basis. The formula is simply:
Total number of leavers over period x 100
Average total number employed over period
The total figure includes all leavers, even people who left involuntarily due to dismissal,
redundancy or retirement. It also makes no distinction between functional (i.e beneficial)
turnover and that which is dysfunctional.
Crude turnover figures are used by all the major surveys of employee turnover, including
the major CIPD and CBI surveys that are carried out each year. So they are necessary for
effective benchmarking purposes. However, it is also useful to calculate a separate figure
for voluntary turnover and to consider some of the more complex employee turnover
indices which take account of characteristics such as seniority and experience.
A stability index indicates the retention rate of experienced employees. Like turnover
rates, this can be used across an organization as a whole or for a particular part of it. The
usual calculation for the stability index is:
Number of leavers with one or more years service x 100
Number employed a year ago

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73

RESEARCH METHODOLOGY:1. NATURE AND TYPE OF STUDY:The study of human relations is an extremely complex area where external
industry environment interact with companys internal policies and practices in a variety
of ways. This research study was Descriptive type of research study because it includes
surveys and fact- finding enquiries of different kinds and description of state of affairs as
it was exists at present.
2. TOOLS USED FOR RESEARCH:The quality and reliability of research study is dependent on the information
collected in the scientific and methodological manner. Employee satisfaction survey is
the best method for Employee retention program. The quantifiable (Employee retention
survey) survey questionnaires and personal interviews were main weapon to extract
information from the respondents. These questionnaires were specifically designed to
determine some basic facts and overall measure of employee perception, attitudes,
motivation, compensation, work environment underlying causes of employee
dissatisfaction towards organization that affect real business metrics, like , Employee
retention rates and turnover.
SOURCES OF DATA:(a) NATURE OF DATAThe main source of data used for this research study was Primary source
because the data collection was occurred directly to the ABB employees through

74

questionnaire (filled up) and personal Interviews. The structure of questionnaire was of
multiple choice of questions.

SURVEY BASED ON THE EMPLOYEE SATISFACTION FORM:To assess ABB employees perception regarding work environment, corporate
communication, training and development program, work force motivation and
engagement, compensation, pay and overall satisfaction towards the organization and to
accumulate the employees suggestions regarding the Retention Program(how should
retain the employees in ABB).
A total of around 100 survey forms were distributed to the ABB employees of
middle level management placed in various departments. Some issues were discussed
with several employees that were relevant to the research study and as a result new ideas
were framed.
(B) METHODS OF DATA COLLECTON:The method of data collection was on Observational base through questionnaire
rather than communicational base. Only the purpose of the study was explained to all
respondents in order to get good response.
(C) SAMPLING DESIGN(TECHNIQUES OF SAMPLING):In this study, the Probability (Random) sampling is used. In Simple Random
Sampling method ,the chances of any particular unit (item) in the population being
selected is known, i.e, the sampling operation is controlled. The randomness is involved
in the selection process thus the estimates of sampling error can be made.
(D) SAMPLE SIZE:-

75

The sample size for the survey was 50 employees of ABB consisting of all the
departments.

DATA ANALYSIS AND INTERPRETATION:In order to express the complex data into concise and logical
form the data collected was transformed into the form of tables and Pie chart diagram.

1. Measure overall employee satisfaction towards organization:

The following questions were included in this section: Up to what extent you are satisfied with your job and post at company ABB?
1)100%

2) 75%

3) 50%

4) 25%

ANALYSIS:

4
6%

1
22%
1

3
30%

2
3
4
2
42%

Up to what extent you are satisfied with HRD activities & HR dept.?
1) 100%

2) 75%

3) 50%

76

4) 25%

ANALYSIS:-

1
8%

4
24%

2
30%

2
3
4

3
38%

Up to what extent you are agree with organizational goal, vision & mission?
ANALYSIS:
CONCLUSION:disagree
1%
not
applicable
5%
somewhat
agree
38%

agree
agree
56%

somewhat agree
not applicable
disagree

42 % of employees are 75% satisfied with current job and post

38 % of employees are 50 % satisfied with HRD activities and HR dept.
56 % of employees are agree with organization goal, vision and mission
It means that out of 100, less than 30 % of employees are overall satisfied towards
organization and remaining are dissatisfied.

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2. EMPLOYEE LOYALTY:The following questions were included in this part: Please indicate the number of years you have worked in your current job?
ANALYSIS:more
than five
years
16%

less
than 1
year
32%

4-5
years
4%

less than 1 year

1-3 years
4-5 years

1-3
years
48%

more than five

years

How much belong ness you have with the organization?

1) 25%

2) 50%

3) 75%

78

4) 100%

ANALYSIS:

1
12%

4
24%

2
14%

1
2
3
4

3
50%

Would you like to join another organization?

ANALYSIS:NO
COMME
NT
6%
NO
30%

YES
YES
64%

NO
NO COMMENT

CONCLUSION: 48 % Of employees are working in this organization from last 1-3 years.
Max 50 % of employees have 75% belongness with this organization.
64 % of employees want to join another organization for better career growth and
prospects.
It means thatApproximately more than 50 % of employees are loyal to the organization.

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3. WORK ENVIRONMENT: How is your work environment?

ANALYSIS:-

Not
accordin
g to you
20%

Good
Best

Worst
2%

Worst

Good
65%

Best
13%

Not according to
you

CONCLUSION:Only 70 % of ABB employees are satisfied about their work environment /

culture.
4. WORKFORCE MOTIVATION AND ENGAGEMENT:The following questions were estimated during this portion: Does your manager/supervisor clearly define your job responsibilities/job
description?
ANALYSIS:-

Disagree
2%
Somew hat
Agree
38%

agree
agree
60%

80

Somew hat Agree

Disagree

 Do Your Manager/supervisor encourage you for high achievements by reducing

the fear of failure?
ANALYSIS:-

Disagree
6%
Somew hat
Agree
24%

agree
Somew hat Agree
agree
70%

Disagree

Is employees growth in your organization highly correlated with performance

appraisal?
ANALYSIS:
Disagree
4%
Somew hat
Agree
20%

agree
Somew hat Agree
agree
76%

Do you work under extreme pressure situation?

ANALYSIS:-

81

Disagree

Frequently
10%
Alw ays
28%

Never
4%

Alw ays
Sometimes
Never
Frequently

Sometimes
58%

CONCLUSION:Approximately 70% ABB employees are agreed about workforce motivation and
engagement provided by manager and supervisors.

5. CORPORATE CULTURE:-

NO
COMME
NT
34%

BEST
8%

BEST
GOOD
NEED IMPROVE

GOOD
52%

NOT
NEED
GOOD
IMPROV
4%
E
2%

CONCLUSION:-

82

NOT GOOD
NO COMMENT

52% employees are agreed for good corporate culture in sense of decision
making, vast , varied, friendly & encouraging.
6. PAY,BENEFITS AND COMPENSATION: Are you satisfied with your pay, benefits and incentives as your current
organization providing?
ANALYSIS:-

1
10%

4
14%

1
2

2
34%

3
42%

CONCLUSION:20% employees are satisfied with their Pay, Benefits and compensation.

7. TRAINING AND DEVELOPMENT

Does your company provide T & D Pgm? If Yes, then how much you are satisfied
with them?
ANALYSIS:-

NO
30%
YES
No
comment
28%

25%
6%

NO
50%
34%

100%
10%

YES
70%

25%
50%
75%
100%

75%
22%

No comment

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CONCLUSION: Approximately 35% of employees are satisfied with T & D pgm and remaining
are dissatisfied.
Approximately 70% of employees
advancement and economic security.

84

are agreed towards

empowerment,

FINDINGS:-

From the above survey, for employee retention, we come to know that approximately 40
% of ABB employees are fully satisfied with this organization and remaining are quite
satisfied and they dont want to continue their job in ABB.

WHY EMPLOYEES WANT TO STAY WITH THIS ORGANIZATION:There is no one strategy to insure successful employee retention. Generally, a
combination of factors influences an employees decision to stay in a job. Those factors
may differ for an individual depending on his/her age, family situation, external job
market or job title, position and experience. There are some following reasons to stay in
this organization given by ABB employees:1. ABB brand and reputation(MNC)
2. Market leader in power and automation
3. Best interpersonal relationship, Ethics and values
4. Good work environment/ culture.
5. Availability for career growth and advancement
6. Positive support from superiors and managers
7. Flat structure ( No hierarchy)

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WHY EMPLOYEES DONT WANT TO STAY WIH THIS ORGANIZATION:Max. Percentage of employees wants to leave that because of following reasons:
1. Poor HR activities, bonding and support with employees
2. Not provision of best salary/Incentive and remuneration.
3. Attrition rate is very high.
4. No visibility of career planning process and no teamwork / spirit.
5. Limited training programs and personality development
6. No facilities or employees like Conveyance, Library, Restrooms, Games, car and
home loans etc.
7. Not awareness of total work area of ABB
8. Dirty politics system.
9. No opportunity for enhance job responsibility / description.

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On the basis of conducted survey it can be safely concluded that Employee

Retention is a very vital part for a company productivity and profitability. During past
decades, Employee turnover has become a very serious problem or every organization.
Managing Retention & keeping turnover rate below target and industry norms is one of
the most challenging issues facing. By following the implementation plan ( Strategy)
which is listed in suggestion part, the existing employee turnover problem in ABB can
reduce and measurement of retention needs of Top Talent can also possible. By which , it
can become the market leader with skilled team work and improve the productivity.
This result (Conclusion) helps HR management to make changes prior to the
development of undesirable situations.

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It is impossible to retain 100 % of employees, but by creating a great place of work, there
will be possibility of mitigation of factors which encourage the employees to leave while
enhance the properties that encourage the employees to stay. Beyond these implications,
the study shows ,t that retaining talent is of course, not a simple matter. The results
suggest that a "one-size-fits-all" approach may not be effective because age and position
can influence one's decision to stay or quit. Understanding needs and motivations as a
function of age and position might help the human resources department to develop
customized and effective retention programs.
There are some suggestions by which organization can retain employees based on the
results o the study.
A IMPLEMENTATION PLAN ( STRATEGY) TO IMPROVE EMPLOYEE
RETENTION PROGRAM IN ABB:1. Determine organizational retention issues .
2. To provide better growth and advancement to employees by changing position role
( Job Rotation)according to his / her performance.
3. Paying attention of individual problem.
4. Provision of motivational activities like leadership, benefits and job satisfaction.
5. Proper judgement for Pay packet / Improve compensation .
6. Proper division of work.
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7. Team work and relaxed work culture /flexible work arrangements.

8. Provide mechanism of Training programs and personal development according to
employee job responsibilities( culture of learning)
9. Appreciate employee for good work to boost his/ her confidence( Reward
performance)
10. Enhanced Supervisory skills.

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1. T.N. CHHABRA(1992),Human Resource Management, Concepts and Issues,

Dhanpat Rai & Co.( P) Ltd., New Delhi.
2.

V.S.P. Rao(1995),Human Resource Management, Text & Cases, Excel Books, New
Delhi.

3.

K.Aswthappa, HRM, Tata Mc Graw Hill, New Delhi.

4. Magazines

Human Review, June 2006, Page 8-48

Human Capital, May 2006, Page 12-44

ABB Outlook

5. Websites

www.abbinside.com/co.in

www.abb.com/co.in

92

www.employeeretentionconnection.com

www.google.com

www.businessranks.com

www.pearsonel.co.in

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EMPLOYEE SATISFACION SURVEY QUESTIONS

Name of department:-
1. Up to what extent you can understand the organization goal, vision and mission?
25%

50 %

75%

100%

2. Up to what extent you are satisfied with your job and post at company ABB.
25%

50%

75%

100%

3. Does your manager/superior clearly define your job responsibilities/job description?

Disagree

Somewhat agree

Agree

Not applicable

4. Do your manager/ supervisor encourage you for high achievements by reducing the
fear of failure?
Disagree

Somewhat agree

Agree

Not applicable

5. Up to what extent you are satisfied with HRD activities & HR dept.?
25%

50%

75%

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100%

6. Does your company provide Training & development program? If YES, then how
much you are satisfied with them?
Yes

No

25%

50%

75%

100%

7. How is the relationship between management /dept. heads and their subordinate?
Excellent

Better

Good

Poor

8. Please indicate the no. of years you have worked in your current job.
less than 1 year

1-3 years

4-5 years

more than fiveyears

9. How much belongness you have with the organization?

25%

50%

75%

100%

10. Are you satisfied with your pay, Benefits & Incentives as your current organization is
providing?
25%

50%

75%

100%

11. Are you satisfied with HR policies of ABB LTD. like : Conveyance
Medical
house rent
Over time reimbursement
competitive salaries
Welfare activities,
Outdoor work expenses & Other schemes
According to you, on which policies this company should improve upon:Please comment:

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12. Are you satisfied with your salary package as your company providing?
Yes

No

13. Is employees growth in your organization highly correlated with performance

appraisal?
Agree

Disagree

14. Do you work under extreme pressure situations?

Always

Sometimes

Never

Frequently

15. Does your company provide you an attractive compensation package?

Yes

No

16. Does your superior provide you the right climate to implement new ideas and
methods suggested by you and for making a right change in the refined work?
Agree

Disagree

17. Did you get respect, advancement, economic security and empowerment from your
organization?
Disagree

Somewhat agree

Agree

Not applicable

18. Did you feel sufficiently trained and oriented for your job?
Pleasecomment:

19. Would you like to join another organization?

Yes
No

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If yes, then why would you join it?

Please comment:
..
20. How is your work environment/culture?
Good
Best
Worst
Not according to you
21. Main three reasons for not happy in the organization:(a)
.(b)
20. Overview about organization:Organization culture:
Growth of the employee in organization:.
21. Mention three best areas about your organization:

22. Mention three weaker areas about your organization:

23. Kindly suggest /inform for betterment of the organization .So, we can retain the
employees.

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