I.

Critical Factors:

Employees salary: those who draw higher salary have higher levels of attrition than those
who draw lesser salary.
Number of hours worked affect the attrition score positively: Those who work longer hours
have higher level of attrition than those who work lesser hours.
Age of the employee has affected attrition significantly. For example, respondents in the
older age group have lesser attitude towards attrition.
Gender-wise, males have more attrition tendency than females.

II. Non-Critical factors:

i. Experience of the employees in the present organization.

ii. Number of training programs attended.
iii. Strength factors (high standards of corporate governance, exciting growth
opportunities, companys work value and ethics) affected attrition. Those who have
given higher scores or ratings for strength factor have less attrition.
iv. Human Resource Management practices affect the attrition scores. The employees
attitude towards attrition decreases when these variables are on the higher side.
v. Among all these regression co-efficient, it is found that age, salary, strength factor,
HRM practice significantly affect the attrition scores either at 1% or 5% level.

Factor Analysis: Factor analysis is to find a method of summarizing the information contained in a
number of original variables in to a smaller set of new composite dimensions (Factors) with minimum
loss of information. The study identified 13 factors affecting high employee attrition in BPO industry
through Factor Analysis as: Lack of integration and goal setting, work atmosphere, work and family
conflict, food and relaxation, motivation and appreciation, work from home, dissatisfaction with
salary and perks, maximum number of hours worked, occupational health problems, labour welfare
and corporate governance, dissatisfaction with rewards and hikes, miscellaneous-lack of
transportation and talent, lack of work ethics.

Introduction: How to Retain Employees

Successful businesses invest countless hours and significant resources

across the company to hire and train new employees. But many companies
dont have a formal employee retention strategy; often, it is an afterthought.
This can be an expensive proposition. In addition factors such as morale
and productivity, it is far cheaper to keep the talent you already have, rather
than hiring and training a new employee.
In fact, recent studies have shown that it costs 21% of an employees
salaryto replace that employee. In effect, it costs over $10,000 to replace an
employee with a $50,000 salary.
There are many reasons why good employees quit. We will address some of
these here and offer some suggestions on how to retain employees.
What are some specific staff retention strategies? There are a number of
effective ways to address this challenge, and its not just giving people more
money.

There are five main areas we will explore:

Orientation & Onboarding
Compensation & Work-Life Balance
Training
Communication
Team Environment

Orientation & Onboarding

We start here because, well, this is where employers need to start. In fact, it
starts with hiring the right person. Too often, companies have a vague
sense of the type of person they want to fill a need, but they do not build a
firm plan around how to hire that person.
This is where recruiting software such as Greenhouse can really help out.
Instead of having six employees ask a candidate the same questions over
and over, you can design an effective interview plan, specifically intended to
gauge characteristics like level of interest, core competence and culture fit.
Once you have hired the right person, it is common, especially among small
and fast-growing companies, to run an informal or detached orientation
and onboarding process.
At some companies, orientation consists of signing papers with Human
Resources, getting email set up, and reading a few articles on the company
intranet. Then, the employee might shadow an existing employee or be
told just to get a feel for the office.
In writing, it seems ridiculous that companies are run this way, but it is not
at all rare. Shockingly, almost half of all companies do not even have formal
welcoming procedures for new employees.
So what does an effective new employee orientation and onboarding
process look like?
Well, in addition to those basics about when paychecks go out and how to
sign up for health insurance, it means communicating a number of
essential ideas to the new employee, including:
Company mission statement and core values
Organizational culture (Be explicitdont let culture issues take care of
themselves, because they wont.)
 The companys most important products, services, customers, and unique
selling proposition
Where the company fits into its wider industry
Assigning a mentor or explicit support system, made up of staff who will
proactively engage the new employee
Most importantly, make sure to get feedback from every employee that goes
through the orientation and onboarding process. Recent employees who are
fresh from the process will be your best allies in improving it.

Compensation & Work-Life Balance

Increased compensation should be the most obvious way to improve talent
retention. More money means people will stay, right? Well, sort of. Indeed,
base pay/salary is the number one reason that people stay at a company.
But compensation means far more than just cold hard cash these days.
Not limited to base pay and bonuses, compensation now means providing
additional benefits that are standard at competitive firms. Effective
employee retention programs might include:
Generous medical, dental and vision insurance
Matching 401(k) and charity match programs
Domestic partner benefits
Flexible and generous maternity and paternity leave
Work-life balance benefits, such as the ability to work from home or, in
companies with more than one office, the possibility of transfer to an office
in a different city
Lets talk about money. It is important that your Human Resources team
monitors your position in the marketplace and makes sure that your
company is providing a fair salary for your employees.
But it is also crucial how you communicate salary and compensation to
employees.
At the very least, salary should be revisited once per year. Even more
importantly, employees should understand when and why salary issues will
be discussed.
Make it a positive experience that benefits both the employee and the
organization. Give employees a chance to prove themselves. If you run this
process twice per year, you give employees a greater sense of perspective, as
well as an incentive to keep pushing themselves to reach that next plateau
of salary or responsibility.
Organization is key here. Develop a system for keeping track of these kinds
of conversations. Its easy to make promises about advancement and pay
raises, but it takes hard work to keep them.

Learning
Yes, employees want to be promoted and they want raises. But they also
want other tangible benefits from their employers. One of the most effective
employee retention ideas is to give workers the opportunity to learn and
develop new skills.
Dont let your employees get bored. Every business needs bodies to perform
similar tasks day after day, but managers must ensure that employees are
being challenged to advance their skill sets.
This is vital not only for employees own sanity and happiness; it is also
important for the future leadership of the company. As the company grows,
it is far cheaper and better for morale and company culture to promote
from within, rather than headhunting to find someone to fit a newly-
created role.
However, one trap that fast-growing startups fall into is promoting
someone who has never managed before without giving him or her any
management training.
It can be overwhelming to go from working on a project alone or in a small
team to being responsible for the work of one or more junior employees.
Too often, it is assumed that because someone can do a job, they can also
manage other people doing the same job. Its just not true.
Some employees might not believe they have the personality to be a
manager, or they dont have the confidence to think they can do the job.
Consider offering management training to make them feel more
comfortable and confident in their own abilities.
This type of management can help to get more buy-in from employees
and create greater company loyalty. Increased ownership at lower levels
also helps senior managers to focus on big picture strategy, as they are not
spending time micromanaging their direct reports.

Communication
According to a recent study, trust/confidence in senior management is
the #3 factor affecting whether employees stay at or leave a company. But
most employers dont see it the same way. For employers, trust/confidence
in senior management doesnt even figure into their top seven employee
retention factors.
The key behind building that trust and confidence? Communication.
Many companies will take care of this by telling employees that managers
have an open door policy. Think about what that really says, though: it
puts the responsibility for any workplace issues on the shoulders of the
employee.
Yes, it is important to be available for employees, but it is even better to
pro-actively show that you care about your employees careers, their futures
and their mental and physical health.
Employees crave feedback. Regular positive reinforcement for a job well
done is par for the course and should not be discounted.
This can come in the form of verbal or written feedback or in recognizing an
employees contributions to the rest of the team, whether in formal or
informal circumstances.
Web applications like 15Five can help busy managers engage with their
employees and give and receive feedback without creating a time suck.
Regular employee communication becomes all the more critical when
discussing unsatisfactory performance. If an employee feels that they have
been recognized in the past for their successes, they will not feel attacked
when their manager provides constructive criticism.
Just as important as managerial feedback is the ability for employees to
measure and monitor their own productivity. If a member of the team can
look at a report and see that they are moving 10% more widgets every week,
or have increased sales by 25% over last year, it allows the employee to
internalize those numbers and feel a pride for their job that can be even
more motivating than a pat on the back from the boss.
Another great, and increasingly popular, way to facilitate communication
between layers of management is to institute a 360-degree review system.
Instead of managers telling their employees what they did right and wrong
over the previous year, 360-degree reviews allow employees to offer
feedback to their managers.
Take this feedback seriously. Again, if you offer this opportunity, but then
do nothing to act on employees suggestions, you may as well not even
bother

Fostering a Positive, Team-Centered Environment

How many times have you heard someone say, I hate my job, but I love the
people?
Obviously, one would prefer that employees love the job and the people,
but this common sentiment illustrates the power of fostering a good
rapport among co-workers.
To that end, a team environment can be beneficial for increased
productivity and morale, but can also be one of the most effective employee
retention strategies.
What are some ways to create a team environment?
Clearly communicate the companys vision to all employeeseveryone
needs to know the common goals they should be pulling toward. This vision
should be evident at every phase of the interview and hiring process and
should also be the backbone of any formal event that the company puts on.
It also helps to explicitly discuss the role of each team within an
organization. If the Customer Success team understands the importance of
the Sales Development process, there will be an increased respect and
collaboration between those teams.
As a manager, emphasize the way in which each team fits into the entire
organizational structure. Show how success or failure in any one
department affects everyone at the company.
Explicitly ask that people keep an open mind when thinking about other
teams within the company.
It is crucial not only to hire people of different backgrounds and different
personalities, but also to explain how diversity benefits the company
overall.
Team-building: its not just about holiday parties and happy hours. Though
it seems cheesy, real team-building exercises can really help build a team
ethic. When people feel like part of a team, they not only enjoy coming to
work and working towars a goal, they also wont want to leave their friends
and fellow teammates for another workplace.
Aside from full-day team-building outings, you can also build a team ethic
around mandatory charity days, where members of different teams come
together to perform charity service, or with such simple in-the-office ideas
as special costume days, amended dress code days, or team-based bake-off
contests.
While some of these ideas are indeed very cheesy, they are ways for
employees to bond, even if theyre just complaining about how cheesy the
event is.

Conclusion
In the modern workplace, it is essential to develop and train skilled
employees. With the increasingly competitive business landscape, retaining
employees can be even more critical in order to avoid losing your best talent
to your fiercest competitors.
According to some reports, up to half of all companies dont have a formal
employee retention program.
By merely thinking about the concept of talent retention, you are ahead of
the game. If your company is able to pick out and implement some of these
strategies, you will be well on your way to improving your employee
retention rate and reducing the cost of employee turnover.
One final thought: dont just pay lip service to these ideals. It means
something when managers insist that an employee take vacation, and when
they dont bother them on their maternity/paternity leave.
Things like this might seem minor at the time, like in the face of a new
product launch or a customer meltdown. But these moments are exactly
what stick in employees minds when an opportunity at another company
comes along.
Employee retention refers to the various policies and practices which let the employees
stick to an organization for a longer period of time. Every organization invests time and
money to groom a new joinee, make him a corporate ready material and bring him at par with
the existing employees. The organization is completely at loss when the employees leave their
job once they are fully trained. Employee retention takes into account the various measures
taken so that an individual stays in an organization for the maximum period of time.

Why do Employees Leave ?

Research says that most of the employees leave an organization out of frustration and
constant friction with their superiors or other team members. In some cases low salary, lack
of growth prospects and motivation compel an employee to look for a change. The management
must try its level best to retain those employees who are really important for the system and are
known to be effective contributors.

It is the responsibility of the line managers as well as the management to ensure that the
employees are satisfied with their roles and responsibilities and the job is offering them a new
challenge and learning every day.

Let us understand the concept of employee retention with the help of an example:

Misha was a talented employee who delivered her best and completed all her work within the
desired time frame. Her work lacked errors and was always found to be innovative and thought
provoking. She never interfered in anybody elses work and stayed away from unnecessary
gossips and rumours. She avoided loitering around at the workplace, was serious about her
work and no doubts her performance was always appreciable. Greg, her immediate boss never
really liked Misha and considered her as his biggest threat at the workplace. He left no stone
unturned to insult and demotivate Misha. Soon, Misha got fed up with Greg and decided to
move on.

Situation 1 - The HR did not make any efforts to retain Misha and accepted her resignation.

Situation 2 - The HR immediately intervened and discussed the several issues which prompted
Misha to think for a change. They tried their level best to convince Misha and even appointed a
new boss to make the things better for her.
Situation 1 would most likely leave the organization in the lurch. It is not easy to find an
employee who gels well with the system and understands the work. Hiring an employee, training
him and making him fit to work in an organization incur huge costs and thus sincere efforts must
be made to retain the employee. Every problem has a solution and the management must probe
into the exact reasons of an employees displeasure. Employees sticking to an organization for a
longer time tend to know the organization better and develop a feeling of attachment towards it.
The employees who stay for a longer duration are familiar with the company policies, guidelines
as well as rules and regulations and thus can contribute more effectively than individuals who
come and go.

Employee retention techniques go a long way in motivating the employees for them to
enjoy their work and avoid changing jobs frequently.

Employee Retention refers to the techniques employed by the management to help the
employees stay with the organization for a longer period of time. Employee retention strategies
go a long way in motivating the employees so that they stick to the organization for the
maximum time and contribute effectively. Sincere efforts must be taken to ensure growth and
learning for the employees in their current assignments and for them to enjoy their work.

Employee retention has become a major concern for corporates in the current scenario.
Individuals once being trained have a tendency to move to other organizations for better
prospects. Lucrative salary, comfortable timings, better ambience, growth prospects are some of
the factors which prompt an employee to look for a change. Whenever a talented employee
expresses his willingness to move on, it is the responsibility of the management and the human
resource team to intervene immediately and find out the exact reasons leading to the decision.

Need & Importance of Employee Retention

Let us understand why retaining a valuable employee is essential for an organization.

Hiring is not an easy process: The HR Professional shortlists few individuals from a
large pool of talent, conducts preliminary interviews and eventually forwards it to the
respective line managers who further grill them to judge whether they are fit for the
organization or not. Recruiting the right candidate is a time consuming process.

An organization invests time and money in grooming an individual and make him
ready to work and understand the corporate culture: A new joinee is completely raw
and the management really has to work hard to train him for his overall development. It
is a complete wastage of time and money when an individual leaves an organization all
of a sudden. The HR has to start the recruitment process all over again for the same
vacancy; a mere duplication of work. Finding a right employee for an organization is a
tedious job and all efforts simply go waste when the employee leaves.

When an individual resigns from his present organization, it is more likely that he
would join the competitors: In such cases, employees tend to take all the strategies,
policies from the current organization to the new one. Individuals take all the important
data, information and statistics to their new organization and in some cases even leak
the secrets of the previous organization. To avoid such cases, it is essential that the new
joinee is made to sign a document which stops him from passing on any information
even if he leaves the organization. Strict policy should be made which prevents the
employees to join the competitors. This is an effective way to retain the employees.
 The employees working for a longer period of time are more familiar with the
companys policies, guidelines and thus they adjust better: They perform better than
individuals who change jobs frequently. Employees who spend a considerable time in an
organization know the organization in and out and thus are in a position to contribute
effectively.

Every individual needs time to adjust with others: One needs time to know his team
members well, be friendly with them and eventually trust them. Organizations are always
benefited when the employees are compatible with each other and discuss things among
themselves to come out with something beneficial for all. When a new individual replaces
an existing employee, adjustment problems crop up. Individuals find it really difficult to
establish a comfort level with the other person. After striking a rapport with an existing
employee, it is a challenge for the employees to adjust with someone new and most
importantly trust him. It is a human tendency to compare a new joinee with the previous
employees and always find faults in him.

It has been observed that individuals sticking to an organization for a longer span
are more loyal towards the management and the organization: They enjoy all kinds
of benefits from the organization and as a result are more attached to it. They hardly
badmouth their organization and always think in favour of the management. For them
the organization comes first and all other things later.

It is essential for the organization to retain the valuable employees showing

potential: Every organization needs hardworking and talented employees who can really
come out with something creative and different. No organization can survive if all the top
performers quit. It is essential for the organization to retain those employees who really
work hard and are indispensable for the system.

The management must understand the difference between a valuable employee and an
employee who doesnt contribute much to the organization. Sincere efforts must be made to
encourage the employees so that they stay happy in the current organization and do not look for
a change.

Employee Retention Strategies

For an organization to do well and earn profits it is essential that the high potential employees
stick to it for a longer duration and contribute effectively. The employees who spend a
considerable amount of time tend to be loyal and committed towards the management and
always decide in favour of the organization. When you meet someone, there is hardly any
attachment in the beginning, but as the friendship matures, a sense of loyalty and trust
develops. In the same way, when an individual spends a good amount of time in an organization,
he gets emotionally bonded to it and strives hard for furthering the brand image of the
organization.

The management cant completely put a full stop to the process of employees quitting their jobs
but can control it to a large extent.

Let us go through some strategies to retain an individual:

 An employee looks for a change when his job becomes monotonous and does not offer
anything new. It is essential for everyone to enjoy whatever he does. The
responsibilities must be delegated according to the individuals specialization and
interests. It is the responsibility of the team leader to assign challenging work to his
team members for them to enjoy work and do not treat it as a burden. Performance
reviews are important to find out whether the employees are really happy with their
work or not.

Constant disputes among employees encourage them to go for a change. Conflicts

must be avoided to maintain the decorum of the place and avoid spreading negativity
around. Promote activities which bring the employees closer. Organize outdoor picnics,
informal get together for the employees to know each other better and strengthen the
bond among themselves. Let them make friends at the workplace whom they can really
trust. Friendship among employees is one strong factor which helps to retain employees.
Individuals who have reliable friends at the workplace are reluctant to move on for the
sake of friendship. No one likes to leave an organization where he gets mental peace. It is
essential to have a cordial environment at the workplace.

The human resource department must ensure that it is hiring the right candidate.
Frustration crops up whenever there is a mismatch. A finance professional if is hired for
a marketing profile would definitely end up being frustrated and look for a change. The
right candidate must be hired for the right profile. While recruiting a new candidate, one
should also check his track record. An individual who has changed his previous jobs
frequently would also not stick to the present one and thus should not be hired.

Employee recognition is one of the most important factors which go a long way in
retaining employees. Nothing works better than appreciating the employees. Their
hard work must be acknowledged. Monetary benefits such as incentives, perks, cash
prize also motivate the employees to a large extent and they prefer sticking to the
organization. The performers must have an upper edge and should get a special
treatment from the management.

Performance appraisals are also important for an employee to stay motivated and
avoid looking for a change. The salary hike should be directly proportional to the hard
work put by the employees. Partiality must be avoided as it demotivates the talented
ones and prompt them to look for a better opportunity.

The salary of the employees must be discussed at the time of the interview. The
components of the salary must be transparent and thoroughly discussed with the
individuals at the time of joining to avoid confusions later. The individuals should be
made to join only when the salary as well as other terms and conditions are acceptable
to them.

The companys rules and regulations should be made to benefit the employees.
They should be employee friendly. Allow them to take a leave on their birthdays or come
a little late once or twice in a month. It is important for the management to understand
the employees to gain their trust and confidence. The consistent performers must also
have a say in the companys decisions for them to feel important.
Role of Motivation in Employee
Retention
Employee retention involves various steps taken to retain an employee who wishes to move on.
An employee must find his job challenging and as per his interest to excel at work and stay with
the organization for a longer period of time. The management plays an important role in
retaining the talented employees who are familiar with the working conditions of the
organization and thus perform better than the employees who just come and go.

Motivation plays an important role in employee satisfaction and eventually employee

retention.

Nothing works better than motivation. Motivation acts as a catalyst to an individuals success.
The team leaders and the managers must constantly motivate the employees to extract the best
out of them. If an employee has performed exceptionally well, do appreciate him. Simple words
like Well done,Bravo,Good,Keep it up actually go a long way in motivating the employees.
The top performers must be in the limelight. The employees must feel indispensable for the
organization. It is essential for the employees to be loyal towards their organization to deliver
their level best.

Does anyone spoil his personal belongings? No. The reason being we are concerned about our
own stuff. In the same way a sense of belonging at workplace is important for better
output. Ownership of work only comes through motivation. Ask the team members to buck
up so that they perform well every time and meet the expectations of the management.

The superiors should send motivational emails to their team once in a week. Display
inspirational posters, photographs on the notice board for the employees to read and stay
motivated. It is natural for an individual to feel low sometimes, but the superiors must ensure
to boost their morale and bring them back on track. No individual should be neglected or
criticized. This demotivates them. If they fail to perform once, motivate them and give them
another opportunity.

Organize various activities and events at the workplace. Ask each one to take charge of
something or the other. Engage the employees in productive tasks necessary for their overall
development. The management must show its care and concern for all the staff members. The
employees must feel secure at the workplace for them to stay motivated.

Whenever any company policy is to be formulated, the opinion of each and every employee
should be taken into consideration.

Invite all of them on a common platform and ask for their suggestions as well. Freedom of
expression is must. Every employee must have a say in the organizations guidelines as they are
made only to benefit them.

Incentives, perks, cash prizes are a good way to motivate the employees. The employees
who have performed well consistently should be felicitated in front of all the staff members as
well as the management. Give them trophies or badges to flaunt. Ask the audience to give a loud
applause to the employees who have performed well. This is a good way to motivate the
employees for them to remain happy and work with dedication for a longer duration. Others
who have not performed up to the mark also gear up for future. The names of the top
performers must be put on the companys main notice board or bulletin board for everyone to
see.

Appraisals are also an important way to motivate the employees. The salaries of the
performers must be appraised at regular intervals- an effective way to retain the employees.
Career growth is an important way to retain the talented employees. Give them power to take
some decisions on their own but the management must have a close watch on them so that they
do not misuse their power.

Without motivation, it is not fair to expect the best out of the employees. No individual likes to
leave an organization where he is being treated well.

Role of HR in Employee Retention

n organization cant survive if the top performers quit. It needs employees who are loyal and
work hard with full dedication to achieve the organizations objective. It is essential for the
management to retain its valuable employees who think in favour of the organization and
contribute their level best. An employee who spends a longer duration at any particular
organization is familiar with the rules, guidelines and policies of the organization and thus can
adjust better.

The Human Resource team plays an important role in employee retention. Let us find out
their role in the same:

Whenever an employee resigns from his current assignments, it is the

responsibility of the HR to intervene immediately to find out the reasons which
prompted the employee to resign. No one leaves an organization without a reason.
There has to be one and the human resource team must probe into it. There can be
innumerable reasons for an employee to leave his current job. The major ones being
conflict with the superiors, lesser salary, lack of growth, negative ambience and so on.

It is the duty of the HR to sit with the employee and discuss the various issues face
to face. Understand his problems and listen to his side of the story as well. Remember
the HR should not focus on conducting exit interviews, rather more emphasis should be
laid on retaining the employees.

Try to provide a solution to his problem. Hiring is a tedious process and it is really very
difficult to recruit the right candidate and train him once again. Do check the track record
of the employee who wishes to move on. It is really essential for the management to
retain those employees who have the potential and are really indispensable for the
organization. If they leave and join the competitors; the organization would be at loss. If
one feels that the employee is not very happy with his team leader, try to shift him to a
new team. If the employee feels his salary is not justified, try to give him a hike but make
sure he is worth it and you dont end up upsetting others.

The HR person must ensure that he is recruiting the right employee who actually
fits into the role. A right person doing the wrong job would never find his job interesting
and certainly look for a change. Make sure every individual has been assigned
responsibilities according to his specialization and interest. The employees must be clear
 with their KRAs from the very beginning. Every individual works for money and the HR
must quote a justified salary acceptable to the other person. Dont compel anyone to join
at a lesser salary. He might join at that moment but would most likely quit after
sometime. The hike should be on the present salary and must match the market trends
and the expectations of the individual.

The human resource department must conduct motivational activities at the

workplace. Organize various internal as well as external trainings which help the
employees to learn something extra apart from their routine work. Make them
participate in extracurricular activities important for their overall development.
Encourage them to interact with each other so that the comfort level increases.

The HR must launch various incentive schemes for the top performers to motivate
them. This way the employees feel important for the organization and strive hard to
perform even better the next time. The employees who show promise should be
awarded with cash prizes, lucrative perks and certificates to make the individual stand
apart from the crowd. Send a mail wishing the employees on their birthdays or
congratulating them when they perform exceptionally well or come out with something
innovative. Arrange a small bouquet for them as a gift from the organizations side. This
way the employees feel attached to the organization and are reluctant to look for a
change. A friendly atmosphere is essential for the employees to feel safe and secure.
Make them participate in various management decision making.

Performance reviews are a must. The HR along with the respective team leaders
must monitor their team members performance to ensure whether they are
enjoying the work or not. The employees look for a change only when their job
becomes monotonous and does not offer any growth or learning. Job rotation can be
one of the effective ways to retain employees.

Role of Team Leaders and

Supervisors in Employee
Retention
Employee retention includes various steps taken to satisfy the employees so that they stay with
the organization for a longer duration. Strong measures must be taken to retain the high
potential employees who have spent a good amount of time in the organization and know it in
and out. It is essential to retain the talented employees who are loyal towards the organization
and can contribute effectively.

The team leaders and the supervisors play an important role in employee retention:

An employee quits his job whenever he faces problems at the workplace and is not satisfied with
his work. The job must be challenging enough and the employees should learn something new
every day for them to stick to it for a long time. It is the responsibility of the team leader to
ensure that the team members are contented with their work and share a good rapport
amongst themselves.
The team members must be assigned responsibilities as per their specialization,
qualification, interests as well as experience. The team members must find their job
interesting for them to enjoy and work hard to achieve the organization goals. The KRAs must be
formulated in the presence of the employees. Let them decide what best they can perform.
Problems crop up whenever there is a mismatch or the employees have to do something out of
compulsion. Dont compel anyone to do something. Let them accept the responsibilities willingly.
An individual with an analytical bent of mind would not do very well in a marketing or branding
profile. A wrong profile is one of the several reasons as to why an employee looks for a change.

An over burdened worker never finds his job interesting and would always be eager for a
change. It is the duty of the team leader to distribute the work equally among all the employees.
The manager should not be partial to anyone and treat all his members as one. He should not let
negativity creep in the team. The superiors must have a control on their subordinates and make
sure they do not fight with each other. Nothing productive comes out of disputes, rather it
demotivates the individuals and prompt them to look for some another opportunity.

Rules and regulations should be same for everyone. Avoid granting special favours to
anyone.

One should never fear his boss. Hitler approach does not work in the current scenario. A
team leader should be a role model for his team. The team managers should not be arrogant
and avoid misuse of their position. He should let all the team members participate in the
decision making process. Every employee should have the freedom of expression and no one
should be left out or neglected. The team leader should trust and respect his team members to
expect the same from them.

The team leader should be accessible to his team members. Employees feel demotivated
when their queries remain unsolved and there is no body to listen to them. When the team
leader doesnt have time for his team, the employees crib among themselves and wish to move
on. The team leader must make sure to be with his team whenever required. He should support
his team members always. Listen to their problems and try to provide a solution. Make them feel
that you are there for them. A little care is essential to make them feel safe and secure. If you
find any of the team members worried, intervene immediately. Minor problems left unattended
can lead to severe stress later, forcing employees to look for a change.

The superiors must maintain transparency in communication. Every team member should
get the same information from their boss for them to remain satisfied and loyal towards the
organization.

The team leader must appreciate those who perform well. Give them a pat on their back.
The hard work of the team members should never go unnoticed. The top performers must be
given a special treatment to motivate them further and expect the same from them every time.
The employees who have not performed well should also be asked to buck up for the next time.

It is the responsibility of the team leader to bind his team together. Take your team out for lunch
once in a while for them to come closer to each other. Every individual expects peace at the
workplace and looks for a change only when there is unnecessary stress at work. The team
leader must promote healthy competition at the workplace.

A team leader should mentor his team well. Employees are reluctant to go for a change when
they have a good boss.
Employee Engagement and
Employee Retention

What is employee engagement?

Employee engagement refers to a situation where all the employees are engaged in their
own work and take keen interest in the organizations activities. An engaged employee is
one who is focussed, enjoys his work and learns something new each day.

An engaged employee is satisfied with his work and would never think of quitting his job. He is
the one who willingly accepts responsibilities and looks forward towards a long term association
with the organization.

Lack of challenging work is one of the major reasons as to why an employee decides to move on.
An individual should be delegated responsibilities as per his specialization and background for
him to perform up to the mark. An employee delivers his hundred percent when he does
something which interests him. Problems crop up when individuals have nothing creative and
challenging to do. An employee must foresee a bright future and better growth prospects in the
organization for him to stick to it for a longer duration. An engaged employee always stays
motivated in his current assignments and does not look for opportunities outside. Why does an
individual always look for challenges outside, why cant he improve the conditions in his own
organization? Monotonous work demotivates an individual and prompts him to look for a
change.

As they say an empty mind is a devils workshop. In the same way, idle employees are the
ones who loiter around and spread negativity all over the place. They are the ones who
provoke others to fight amongst themselves. Individuals who have nothing to do at workplace
kill their time by gossiping around and badmouthing their organization. They always talk
negative about the management and encourage others to move on.

The team leaders and the management must take the initiative to assign challenging work to the
subordinates so that they do not treat their work as a burden. An employee must be asked to do
something innovative everytime.An individual engaged in his work strives hard to deliver his
level best and live up to the expectations of the management everytime. He looks forward
towards achieving his organizations targets and thus making it one of the best places to work.

An employee who is busy with his work stays away from nasty politics, backstabbing and
thus maintain the decorum of the office. He prioritizes his work and does not really get time
for controversies. Individuals are reluctant to leave when they enjoy a cordial relation with their
colleagues. Everyone expects a stress free environment at workplace and tends to leave only
when there are constant disputes. No one likes to carry tensions back home. An engaged
employee does not get time to participate in unproductive tasks instead finishes his assignments
on time and benefits the organization.

The team leaders must monitor the performance of the team members to ensure whether they
are satisfied with their profile or not? Performance reviews are a must to make sure every one
finds his job interesting. Discussions are essential at the workplace and everyone should have
the liberty to express his opinions on an open forum. Dont impose things on anyone. Let people
decide themselves what best they can do. This way employees are satisfied with their work and
never look for a change.

One should always remember that offices are meant to work and not for fun. For an
individual, his work should come first and everything else later. The employees who do not take
ownership of their work blame others and the organization for the poor show. Cowards leave
the organization at its bad times, the one who really has the potential to make it big stick to it
and make things happen there only.

Challenges in Employee Retention

In the current scenario, a major challenge for an organization is to retain its valuable and
talented employees. The management can control the problem of employees quitting the
organization within no time to a great extent but cant put a complete full stop to it. There are
several challenges to it.

Let us understand the challenges to employee retention:

Monetary dissatisfaction is one of the major reasons for an employee to look for a
change. Every organization has a salary budget for every employee which can be raised
to some extent but not beyond a certain limit. Retention becomes a problem when an
employee quotes an exceptionally high figure beyond the budget of the organization and
is just not willing to compromise.

The organization needs to take care of the interests of the other employees as well and
cant afford to make them angry. The salaries of the individuals working at the same level
should be more or less similar to avoid major disputes amongst employees.

A high potential employee is always the center of attention at every workplace but one
should not take any undue advantage. One should understand the limitation of the
management and quote something which matches the budget of the organization. An
individual should not be adamant on a particular figure, otherwise it becomes difficult for
the organization to retain him. Remember there is a room for negotiation everywhere.

In the current scenario, where there is no dearth of opportunities, stopping people

to look for a change is a big challenge. Every organization tries its level best to hire
employees from the competitors and thus provide lucrative opportunities to attract
them. Employees become greedy for money and position and thus look forward to
changing the present job and join the competitors. No amount of counseling helps in
such cases and retaining employees becomes a nightmare.

Individuals speak all kind of lies during interviews to get a job. They might not be
proficient in branding but would simply say a yes to impress the recruiter and grab the
job. It is only later do people realize that there has been a mismatch and thus look for a
change. Problems arise whenever a right person is into a wrong profile. An individual
loses interest in work whenever he does something out of compulsion. The human
resource department should be very careful while recruiting new employees. It is really
important to get the reference check done for better reliability and avoid confusions
later.
 Some individuals have a tendency to get bored in a short span of time. They might
find a job really interesting in the beginning but soon find it monotonous and look for a
change. The management finds it difficult to convince the employees in such cases.

Individuals must also understand that every organization has some or the other problem
and adjustment is required everywhere, so why not in the present organization? It
becomes really difficult for the HR Department to find out what exactly is going on in the
minds of the individual. An individual should voice his opinions clearly to make things
easier for the management.

Unrealistic expectations from the job also lead to employees looking for a change.
There is actually no solution to unrealistic expectations. An individual must be mature
enough to understand that one cant get all the comforts at the workplace just like his
home. Individuals from different backgrounds come together in an organization and
minor misunderstandings might arise but one should not make an issue out of it.

An individual must not look for a change due to small issues. One needs time to make his
presence feel at the organization and must try his level best to stick to it for a good
amount of time and ignore petty issues.

How to Retain the Best Employee

The management must understand the difference between a dedicated employee and an
employee who comes to office just for the sake of fun. The employees who really are concerned
about the organization must be retained for better output and a healthy environment at the
workplace.

Let us go through few steps to avoid talent drain:

Work should never become monotonous and must offer a new learning each day.
An employee should be able to upgrade his skills and enhance his knowledge at the
workplace. Employees leave the organization whenever there are no chances of further
growth. An individual must be made to do something which really excites him and most
importantly matches his background. The employees must be asked to accomplish the
tasks in the most innovative way for them to enjoy their work. No one should be asked to
do anything out of compulsion. The team leader must not force anyone to work. Let
them accept assignments willingly. The moment work becomes a burden for the
employees, they look for a change.

Every individual should enjoy privacy at the workplace. The superiors must ensure
that no employee interferes in each others work. Team members sitting at adjacent
desks should not overhear their colleagues conversation or check any confidential
documents. These things lead to severe demotivation and prompt an individual to look
for a change. Discussion is important but one should not irritate anyone. The team
manager should also not make his team members life hell. Just give them deadlines and
ask them to complete the assignments within the desired time frame. Motivate them to
deliver their best but dont be after their life. Remember everyone is mature enough to
understand that work comes first, and everything later.
 The seniors must be reachable to their subordinates in case of queries. The
hierarchy should not be too complicated and transparency in communication is
important at all levels. Manipulation of truth should be strictly avoided as it leads to
severe misunderstandings and eventually conflicts. Employees look for a change when
there are unnecessary disputes at the workplace. The team leader once in a week must
make sure to meet all the team members on an open forum to address their concern.
The meeting should not be made too formal. Everyone should be allowed to bring their
cups of coffee. Such interaction strengthens the bond among the employees and also
avoid friction among individuals. It is essential to have a positive ambience at the
workplace for people to stick to it for a longer time.

Every employee should be treated as one irrespective of his designation. Sexual

harassment is against the law and is a strict no no at the workplace. The male workers
should respect their female counterparts and make them feel comfortable. Dont ask any
female employee to stay back late. Leg pulling, back stabbing, lewd remarks must be
avoided at the organization to retain the employees.

The management must formulate employee friendly policies. The employees must
be allowed to take one or two leaves in a month so that they get time to rejuvenate.
Dont call the employees on weekends. Let them enjoy. The human resource department
must take the initiative to celebrate birthdays of employees at the workplace. This way
people come closer, make friends, develop trust and are thus reluctant to go for a
change. Major festivals should also be celebrated at the organization for employees to
get attached to the organization.

Incentives, cash prizes, trophies, perks should be given to deserving employees to

motivate them to perform up to the mark every time. The salaries of the high
potential employees must be appraised from time to time as monetary dissatisfaction is
one of the major reasons for employees quitting their jobs. The hard work of the workers
must be appreciated. The slow learners must not be criticized but should be inspired to
gear up for the next time.

The performers must be made to participate in the decision making process. They
should have a say in the major strategies of the organization for them to feel important
and trust the management.

Discipline is a must at the workplace. If the office timing is 9.30 am, every employee
regardless of designation must punch his card at 9.30 am sharp or before that. No
relaxation should be given to anyone. Partiality is something which does not work in the
corporate world. It is important to maintain the decorum of the office to make the
organization a better place to work.

Construction industry

With real-estate prices at record highs in many cities nationwide, HR

leaders in the construction industry should increase their focus on hiring
and keeping top talent. In many areas nationwide, this pressure on
recruitment is driven by more than just consumer demand. Many of the
most skilled construction and manufacturing employees are quickly
approaching retirement age. Commercial Observer reports that in New York
alone, approximately 40 percent of statewide construction workers will
reach retirement age within two years.

A smarter and more nuanced approach to attracting and retaining talent

could optimize profits in the construction and manufacturing industries. But
the industry does carry unique recruitment challenges. Here's how HR
leaders can attract potential employees with better benefits strategies.

Benefits That Matter to Skilled Trade Workers

The Society for Human Resources Management (SHRM) reports that

benefits that matter today in all industries include health and preventative
wellness, smarter retirement plan offerings, monetary bonuses and better
types of leave. But how do the priorities of skilled trade workers stack up to
their peers? Kimmel & Associates found that the benefits that matter most
to skilled trade workers vary by the decade of career.

First decade employees want varied job experience and location

flexibility.

Second decade employees want the ability to grow their career

and income.

Third decade employees want work-life balance and relocation

benefits.

Benefits that are valuable to your employees can vary according to your
workplace demographics and geographic region. Using internal workforce
data and exteral workforce data in your industry to benchmark your
workforce's priorities could be the best way to tell on an organizational and
individual basis how to attract and keep talent.

3 Tips for Employee Retention in the Construction Industry

HomeAdvisor found that 93 percent of construction businesses believe that

their business could grow faster in the next 12 months if it weren't for talent
shortages. In the ADP Research Institute National Employment Report,
Mark Zandi, chief economist of Moody's Analytics, stated that "job growth
has moderated in recent months, but only because the economy is finally
returning to full-employment." If your organization is struggling to fill
vacancies, it could be due to a sheer shortage of individuals looking for
work.

HomeAdvisor reports that some of the best strategies for benefits and
retention in the construction industry and other skilled trades may be non-
financial in nature.

1. Offer alternatives to four-year degrees. While millennials are the most

educated generation, offering defined career paths to individuals who
have chosen not to pursue higher education can help recruitment.

2. Encourage entrepreneurship and the potential for self-

employment. Seventy-eight percent of millennials admire
entrepreneurs, and 62 percent have considered starting their own
business, according to Ernst & Young.

3. Provide mentorships and apprenticeships. Effective job training can

be a major factor in both recruitment and retention among skilled
laborers. Organizations that offer apprenticeships allow HR leaders
to tap into talent markets who are ready to commit to their trade.

Despite peaks and dips in skilled trades since the Great Recession, HR
leaders today agree that their need for growth and profitability often
outpaces talent availability. By understanding the benefits that matter to
your workforce and key opportunities to attract a new generation of
talent it's possible to avoid costly turnover.

How Can Your Construction Firm Improve Employee Retention?

Construction contractors across the country have felt the shortage of qualified workers, which makes
employee retention all the more important. Moreover, increasing retention rates offers numerous
benefits that directly impact a construction firm's bottom line. The construction industry certainly
presents unique circumstances for hiring and retention, but employers can take specific steps to
attract and keep qualified employees.

Benefits of Increasing Retention

The construction industry isn't known for placing much emphasis on employee retention, often
because hiring is often temporary, guaranteed only until the end of a project. However, a look at top
performing construction firms reveals a consistent dedication to retention. When that increases, firms
tend to enjoy a number of related benefits:
More profit from projects: Replacing employees takes time, as does training new staff. Both
these activities can cut into your profit margins on your projects. Thus it's valuable to replace
employees as infrequently as possible.
More projects on time or ahead of schedule: The world of construction is highly deadline
driven--and full of variables that prevent meeting those deadlines. Higher retention rates
correspond with completing more projects on time or even early--making your clients happy and
increasing your opportunities for repeat business.
Improved project safety performance: Construction workers are most likely to have
accidents during their first thirty days on the job, so you want an experienced crew whenever
possible.
How to Improve Retention at Your Firm
Perhaps your firm is struggling with retention, or maybe it hasn't been a priority in the past. Either way,
your construction company will reap benefits from an integrated retention program. Studies show that
the firms with the highest retention rates have a few key attributes in common.
Competitive pay and benefits: To attract the best employees, firms offer wages and benefits
that aren't just competitive for the industry--they're also competitive as compared to the other
industries where prospective hires could find employment. Top firms also often offer incentives for
learning new skills and tenure-based raises.
More thorough candidate evaluation: The hiring process may include a written or
performance test in addition to the usual interview. This seems like a small thing, but it serves two
functions. First, a more rigorous screening process weeds out applicants who aren't seriously
interested in employment. Second, the test can help you identify stronger applicants.
Commitment to employee morale: Even if all the workers on a project are temporary,
they're more likely to stick around if they work in a positive, supportive environment. That includes
basics like sanitary Portajohns and designated break areas. It also includes providing employees
a means to provide constructive feedback and even keeping them updated on project progress.
Another key aspect of employee morale is confidence in the employer's commitment to workplace
safety.
Retention monitoring: Only a small percentage of construction firms actually monitor their
retention, and they mostly track retention by project, not company-wide. A broader focus can shed
light on retention trends. In addition to tracking your retention rates, you'll also want to conduct
exit interviews to learn more about why employees are leaving. This information can help you
make your firm a more appealing place to work.
The best approach for improving retention is to make it a priority that informs all your decision making.
While rates might not improve overnight, eventually your firm will enjoy both increased retention and
the commensurate benefits of improved productivity and profit.

Q1) How long have you been associated with the company?

1.1 4years
Attrition rate dips for
the first time since 2009
crisis
Aon Hewitts annual Salary Increase Survey highlights that the focus is
more on merit, and India is entering the era of the New Normal in
salary increases in India

Attrition rate dips for

the first time since 2009
crisis
Aon Hewitts annual Salary Increase Survey highlights that the focus is
more on merit, and India is entering the era of the New Normal in
salary increases in India
The attrition rate in India is dropping at 16.3%, it is the lowest that the corporate India has
observed since the 2009 financial crisis. This point was mentioned in the 20th edition of Aon
Hewitts annual salary survey on Wednesday. However, attrition though controlled at the
broader level, key talent attrition increased to 7.3% in 2015 to 5.9% in 2014. Organisations
are also developing separate retention plans and policies for their top talent. While rewards
continue to be the best retention tool to ring-fence top talent, programs around leadership
opportunities and coaching, overseas assignments, fast track programs for high potentials
are gaining prominence.
2.0 Literature Review
2.1 Theoretical Review

The following theories buttress the study on employees turnover.

2.1.1 Equity Theory

Equity theory is concerned with the perceptions people have about how they are treated as
compared to

others. Equity theory proposes that a person's motivation is based on what he or she considers being
fair when

compared to others (Redmond, 2010). As noted by Gogia (2010), when applied to the workplace,
equity theory

focuses on an employee's work-compensation relationship as well as that employee's attempt to

minimize any

sense of unfairness that might result. When compared to other people, individuals want to be
compensated fairly

for their contributions. A person's beliefs in regards to what is fair and what is not fair can affect his
motivation,

attitude and behaviour. Employees who feel unfairly treated may be compelled to seek for better
opportunities
elsewhere.

2.1.2 Expectancy Theory

Expectancy theory provides an explanation of why individuals choose one behavioural option over

others. The basic idea behind the theory is that people will be motivated because they believe that
their decision

will lead to their desired outcome (Redmond, 2010). Expectancy theory proposes that work
motivation is

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dependent upon the perceived association between performance and outcomes and individuals
modify their

behaviour based on their calculation of anticipated outcomes (Chen & Fang, 2008). This theory is
built upon the

idea that motivation comes from a person believing they will get what they want in the form of
performance or

rewards. The theory states that individuals have different sets of goals and can be motivated if they
believe that:

(i) There is a positive correlation between efforts and performance. (ii) Favourable performance will
result in a

desirable reward. (iii) The reward will satisfy an important need. The desire to satisfy the need is
strong enough

to make the effort worthwhile (Lawler, Porter & Vroom, 2009). Thus, employees who feel their
expectations are

not being met may be compelled to seek for better opportunities elsewhere, where they feel their
expectations

would be met.

2.1.3 Herzberg Two Factor Theory

Boundless (2015) argues that in this theory, there are two types of factors that influence motivation
and

satisfaction among individuals, particularly those who work in the employment sector. This theory
asserts that

there are certain factors in the work place that can cause job satisfaction and a separate set of
factors that can

cause dissatisfaction (Boundless,2015). It is critical to emphasize that this is not a linear relationship:
the factors

that cause satisfaction do not necessarily negate those that cause dissatisfaction; one does not
necessarily

increase exactly as the other decreases. According to Sincero (2008), in 1959, Herzberg conducted a
study from

which he proposed a two-factor approach when attempting to understand motivation among

employees. The

two-factor theory includes two types of factors that affect how motivated or satisfied an employee is
at work.

These are comprised of hygiene factors and motivator factors. Hygiene factors are those that need to
be

addressed by a business in such a way that they would not result to the employees unpleasant
experiences and

feelings at work (Sincero, 2008). The satisfaction of hygiene factors motivates employees in their
work. The

hygiene factors are: (i) Wages, salaries and other financial remuneration (ii) Company policy and
administration

(iii) Quality of interpersonal relations(iv) Working conditions (v) Feelings of job security and (vi)
Quality of

supervision.

Motivator factors emerge from the need of an individual to achieve personal growth. Job satisfaction

results from the presence of motivator factors. Moreover, effective motivator factors do not only lead
to job

satisfaction, but also to better performance at work. The motivator factors identified by Sincero
(2008) are: (i)

Challenging or stimulating work (ii) Status (iii) Opportunity for advancement (iv) Responsibility (v)
Sense of
personal growth/job achievement (vi) Acquiring recognition.

2.3 Empirical Review

Shukla and Sinha (2013) examined employees turnover in the banking sector. The study employed

descriptive research design. Primary data were obtained from the respondents through the
administration of

structured questionnaire. The collected data were analysed using mean, standard deviation and
linear

correlation. The results of the study revealed that lack of job satisfaction and work environment
ranked high

among the causes of employees turnover. Employees were willing and ready to change to a new job
that

promised them better remuneration and work environment. This suggests that a strategic approach
to reducing

employees turnover is to make the work environment conducive and provide improved
remuneration.

Nwokocha & Iheriohanma (2012) conducted a study in Nigeria on emerging trends in employees

retention strategies in a globalizing economy. They argued that to minimize the rate of employee
turnover and

catch up with the current demands of global economic needs and organizational performance,
organizations

should adopt critical sustainable retention trends such as establishing a strategic plan, involving
employees in

decision-making process, initiating personalized compensation plan, installing mechanisms for career
planning,

training and development and building flexible work programs especially for critical knowledge
employees.

Bula (2012) in the study of labour turnover in the sugar industry in Kenya found that salary is a major
factor

causing labour turnover followed by training, promotion, performance appraisal and work condition.
Other

factors like recognition, job content, participation in decision making and leadership style were also
considered
as immediate factors. It was also revealed that although lack of employee commitment and
motivation can be

major causes of labour turnover, they are dependent on all the other factors causing labour turnover.

Studies in Tanzania observed that labour turnover can be influenced by a number of controllable and

uncontrollable as well as demographic factors. Magalla (2011) observed that controllable factors
such as short

contract, poor working condition, poor recruitment procedure, lack of motivation, and poor or
inadequate

incentives and rewards are the reasons that influence voluntary labour turnover in the public
organizations

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especially for employees living in rural areas. Managerial controllable factors such as unequal
treatment of

workers, lack of promotion and growth, low wages and salary, unclear compensation procedures,
less

recognition and lack of employees involvement in decision making were also mentioned by Susana
(2011) as

other factors that cause voluntary employees turnover in both public and private sectors including
microfinance

and health institutions in Tanzania.

Ongori (2007) conducted a related study in Botswana. It was observed that among of the factors that
influence

employees turnover in any organization are inadequate information including physically powerful

communication systems on effective performance, uncertain supervisors desires and peer

employees, and
conflicting job functions. These factors may be the basis on which employees may begin to
experience loss of

job satisfaction and may finally result in an employee leaving the organisation. Factors such as poor
personnel

policies, poor recruitment policies, poor supervisory practices and poor grievance procedures
contribute to high

labour turnover from the study. Where there were cases of improper management practices and
policies on

employees matters; especially when employees are not recruited systematically, promotions of
employees are

not based on spelled out policies, no grievance resolution procedures in place, these would lead to
high

employees turnover.

Ng'ethe, Iravo & Namusonge (2012) examined the determinants of academic staff retention in public

universities in Kenya. The results of the study revealed that leadership influence over the behaviour
or action of

subordinates was a potential cause of employees turnover in Kenyan organizations. Distributive

justice, the

extent to which rewards and punishments are related to job performance and fairness in the
allocation of

outcomes such as pay and promotions were reported to be critical to employees retention. Work
environment

was another factor that affects employees decision to stay with or leave any organization. The work

environment include issues such as office space, equipment, air conditioning, comfortable chairs just
to mention

but a few. The employees perception on their work environment also affect their productivity and
efficiency.

Many people would be dissatisfied if working conditions are poor. Thus, to reduce employees
turnover, the

work environment should be made very conducive for the employees.

Okubanjo (2014) examined the predictive power of organizational commitment and job satisfaction
on
primary school teachers turnover intention in Ijebu North Local Government area of Ogun State.
Three

instruments, turnover intention scale, organization commitment scale and intrinsic motivation
inventory were

utilized in the study. Multiple regression (stepwise) and simple percentage were used for analysis.
Findings

showed that the two determinant variables (organizational commitment and intrinsic motivation)
when taken

together, determined the criterion variable (turnover intention). Finding also indicated that
organization

commitment was the most potent contributor to the prediction of turnover intention of primary
school teachers.

3.0 Methodology

The current study, being a review, adopted the desk research methodology. This approach involves
the

collection of relevant information from existing resources in the internet and the library. Specifically,
online

journal articles, hard-copy journal articles, text-books and other periodicals were consulted for the
relevant

secondary information used in this study. This approach is considered appropriate bearing in mind
the large

volumes of studies which have already been carried out on employees turnover.

4.0 SUBMISSION ANALYSIS

4.1 Causes of Employees Turnover

Literature reveals that some factors facilitate employees turnover. This section presents the most

important causes of employees turnover.

4.1.1 Work Environment

Shamsuzzoha & Shumon (2010) argue that if the physical condition in the place of work is deficient
of

crucial amenities, it could discourage employees and promote employees turnover. Inadequate
provision of

basic amenities such as health care services, furniture, suitable lighting, and proper ventilation can
cause
employees to begin to seek for alternative employment where the physical condition is more
conducive. Another

work environment factor that can cause employees turnover is stress. Shukla and Sinha (2013)
observe that in

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the banking sector, technological advancement and globalization have increased time pressure;
extreme work

demand, role conflicts and problematic customer relationship which are causes of stress. Employees
who prefer

to work under less pressure may quit for alternative employment opportunities that promise less
stress (Firth,

David, Kathleen & Claude, 2007).

4.1.2 Poor Remuneration Packages

This represents one of the major causes of high labour turnover. Shukla and Sinha (2013) observe
that

when an employee is engaged in a low-wage position with inadequate benefits, there is little or no
motivation to

continue if a comparable employer offers even a slightly higher rate of pay. Thus, low-wage jobs
usually record

a higher rate of employees turnover; although, it cost less for employers to replace employees in
this category

when compared to those in a high-wage positions (Handelsman, 2009). Employees who contribute
significantly

to an organization but whose wages fall short of the current market rate, possibly will feel cheated in
the present

employment and seek for employers that will pay what they considered appropriate remuneration
(Firth et al.,
2007). Hissom (2009) asserts that the topmost factor that causes high labour turnover rate is salary
structure

since employees are rational and will often prefer employment that has comparable salary structure
in place.

Therefore, poor remuneration remains a major cause of high employees turnover (Rampur, 2009).

4.1.3 Poor Interrelationship between Employees and Management

The nature of interrelationship between employees and management represents another factor that

cause employees turnover. If the interrelationship between employees and the management is poor,
employees

will not hesitate to quit for another employment at any available opportunity (Shukla& Sinha,
2013).Conflict

with managers and supervisors is a frequent cause of employees turnover. A feeling that
management in

general, or a particular manager and team leader is treating employees unjustly or is bullying his staff
can lead

to a high rate of employee turnover (Armstrong, 2004). Shamsuzzoha & Shumon (2010) argue that it
is

somewhat unusual for employees to quit employments in which they are happy and having good
interpersonal

relationship, even if offered another employment with a higher salary elsewhere. This is because
employer-

employees relationship plays a very important role on employees turnover.

4.1.4 Lack of Career Progression

Employees turnover tends to increase if there are no career prospects in the employment.
Discontent

with career prospects is a foremost cause of turnover. Increasing number of employees desire to
grow in their

careers and need to move forward, and there is little or nothing employers can do about it,
particularly in todays

flatter organization and promotion prospects being so limited. These are the individuals who
acquired portfolio

of skills and may deliberately change direction numerous times during their careers (Armstrong,
2004).
Europhia (2008) cited in Shukla and Sinha (2013) reports that career development is a lot more
significant than

remuneration in Europe and America but it is considered equivalent to remuneration in Asia.

Increase in labour

turnover could also be as a result of lack of potential opportunity for promotions or elevations. As a
rational

being, employees would prefer employments which provide them with opportunity for higher
position and

higher remuneration packages (Rampur, 2009).

4.2 Costs and Consequences of Employees Turnover

Increased labour turnover is very costly for all business organizations (Amour, 2011). These include

direct and indirect costs. The generally noticeable costs in connection with turnover are the amounts
of funds

expensed on vacancy advertisement, headhunting fees, interview, recruitment and training of new
hire, loss of

productivity, and cost of inefficiency of the new staff. These costs have been estimated to range from
thirty

percent to as high as four hundred percent of a single employees annual salary, depending on the
industry and

job role being filled (Bureau of Statistics, 2008; Beam, 2009; Wangui, 2010).

Amour (2011) recognizes that there are other hidden costs related to employees turnover. Instead of
an

organization expending substantial amount of money and time trying to find replacements for
disengaged

employees; it could have dedicated such resources and energy in productive activities that will
contribute

towards moving the organization in achieving its objectives. This hidden cost of turnover is one that
frequently

gets ignored when considering approaches geared towards reducing employees turnover.
Organizations that

spend fewer amounts of time and financial resources on solving employees turnover problems could
actuall
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