International Journal of Engineering Technology, Management and Applied Sciences

www.ijetmas.com November 2016, Volume 4, Issue 11, ISSN 2349-4476

A Study on Employee Retention in Thirubuvanai Industrial

Area

K. Dhamodharan Dr.A.Alagumalai
Research Scholar(PhD)Political Science Research Supervisor& Associate Professor
Alagappa University,Karaikudi Department of Political Science
PTMTM College, Kamuthi

ABSTRACT
Employee retention is a tool to reduce the labour turnover. For successful manpower planning every organisation is to
identify the factors that affect the employee turnover and design a suitable retention programs. The present study is an
attempt to analyse the employee retention programs at Thirubhuvanai Industrial area. 150 samples were drawn from
among the industrial units at Thirubhvanai. Closed ended questionnaire was used to collect the data from the
respondents. The data were statistically tested applying appropriate tools. The study shows that the majority of the
employees are having 10 years or more experience. Majority of them are satisfied with the organisational culture and
are concerned with the training. Most of them are satisfied about their relationship with managers and are also satisfied
with the skill they possess for performing their works. 54 % of the respondents expressed their satisfaction on present
retention measures of their company.
Key words: Employee retention, Labor turnover, Organisational culture, motivation relationship

INTRODUCTION
Employee retention refers to the ability of an organization to retain its employees. 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. Employee retention can
represent by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept
80% of its employees in given period). However, many consider employee retention as relating to the efforts
by which employers, attempt to retain employees in their work force. In this sense, retention becomes the
strategies rather that the outcome. It is the ability of an organization to retain its best employees and hence
maintain a lower turnover. An organization is able to achieve this by adopting various employee retention
programs. An employee retention program involves steps starting from identifying the major contributors in
the organization, and designing schemes to involve them with the organization to ensure that they do not
leave. The success of these programs is measured by simple metric like retention ratio, and turnover. 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. Employee retention refers to
policies and practices companies use to prevent valuable employees from leaving their jobs. How to retain
valuable employee is one of the biggest problem that plague companies in the competitive marketplace. Not
too long age, companies accepted the “revolving door policy” as part of doing business and were quick to fill
a vacant job with another eager candidate. Nowadays, Business often find that they spend considerable time,
effort, and money to train and employee only to have them develop into a valuable commodity and leave the

46 K. Dhamodharan, Dr.A.Alagumalai
 International Journal of Engineering Technology, Management and Applied Sciences

www.ijetmas.com November 2016, Volume 4, Issue 11, ISSN 2349-4476

company for greener pastures. In order to create a successful company, employers should consider as many
options as possible when it comes to retaining employees, while at the same time securing their trust and
loyalty so they have less of a desire to leave in the future.

THE ADVANTAGES OF EMPLOYEES RETENTION

Acquiring Talent
When organization retains their employees, they avoid hiring costs. These are often hidden costs. The cost to
post on job boards can be annual or a one-time expense.
Agencies charge a percentage of employees’ annual wages. Larger companies may here staffing departments
chose sole responsibility is screening and interviewing talent.
Training and Development
Retaining workers reduces training costs, recruits need to be trained in business practices specific to the
employer’s software, culture and office practices. Training requires one or more current employees to take
time away from their job responsibilities to educate the new employee on the organization’s way of doing
business.
Skilled Labor Force
Employment retention develops a strong staff. Working individually or in teams these individuals share
knowledge and expertise. The future managers of an organization come from this work pool. These
employees are the historians of an organization’s successes and challenges, and provide mentoring to new
hires. They are committed to the continued growth of the origination and its work force

REVIEW OF LITERATURE
Kehr (2004), explains that the implicit retention factors in spontaneous, expressive and pleasurable behavior
and can be divided into three variables; power, achievement and affiliation. The review of the related
literature on the title unanimously acknowledges that successful organizations share a fundamental philosophy
of valuing and investing in their employees (Maguire, 1995; Annand, 1997) and managing retention of
promising employees‟ is considered as fundamental of mean of achieving competitive advantage amongst
organization (walker, 2001). Aliya and Fariduddin (2003), found the findings tend to prove the hypothesis that
the factors leading to positive attitude an those leading to negative attitudes are different. Previous researches
suggested several factors which play pivotal role in employee retention Cappelli (2000). The factors which are
considered and have direct affect are; career opportunities, work environment, work life balance,
Organizational justice, and existing leave policy and organization image. Employee are stay and loyal with
such organization where employee have value, sense of pride and work to their full potential Cole (2000).

OBJECTIVE OF THE STUDY:

To analyze the retention techniques practices of the company and to give suggestion for retaining the
employees. To suggest for selection of employees who are well fit for the job. To suggest the ways to improve
communication and morale
NEED FOR THE STUDY:
The study will identify the ways to avoid the loss of company’s knowledge. The study would help to maintain
the goodwill of the company. The study will portray the essentialness for the organization to retain the
valuable employees showing potential.
SCOPE OF THE STUDY:
This study aims to cover the major areas of employee retention systems. In this study, attention has been paid
on analysis on the employee retention. This study helps the organization to know about the employee retention
prevailing in the present time among the employers. It will be helpful for the corporation to know the effective
sources and techniques in employee retention

47 K. Dhamodharan, Dr.A.Alagumalai
 International Journal of Engineering Technology, Management and Applied Sciences

www.ijetmas.com November 2016, Volume 4, Issue 11, ISSN 2349-4476

RESEARCH METHODOLOGY
Research is an art of scientific investigation. According to Redmen and mary defines research as a
“Systematic effort to gain knowledge. Research methodology is a way to systematically solve the research
problem. It is a plan of action for a research project and explains in detail in detail how data are collected and
analyzed. This research study is a descriptive research study. The sampling units for this study are employees
of Thriubuvanai industrial area. The sample size for this study is 150. Different types of sampling methods are
available. In this study the random sampling was selected for this research. This sampling method used the
principles of non-probability technique. The area of sampling was taken in Thriubuvanai industrial area. To
arrange and interpret the collected data the following statistical tools were used.
1. Percentage Method.
2. One way ANNOVA.
3. Correlation Analysis
4. Weighted Average Method

LIMITATIONS OF THE STUDY:

This study is restricted to limited facts and duration of the study is only for 15 days.
This study may contain few biases because the employees in the organization may not provide the exact
information. Due to work load some of the employee may not properly responded to the questionnaire.

FINDINGS OF THE STUDY

It was found that 29% of respondents belong to 25-30 age groups, 19% respondents belong to 30-35 age
group, and 25% of respondents belong to 35-40 age groups. 27% of the respondents are above 40 age group.
Majority of the respondents were 25-30 age groups. 18% of respondents were only in SSLC, 30% of
respondents were in HSC, 28% of respondents were in U.G, 24% of respondents were Diploma. So, most of
the respondents were HSC. 13% of respondents are less than 1 year experience, 21% of respondents 1-2 years
experience, 16% of respondents were 2-5 years,22% of respondents were 5-10 years experience and 28% of
respondents were above 10 years experience. Majority of .respondents are having 10 years experience. 59%
of respondents were male and 41% of respondents were female. The above table infers that 15% of
respondents were getting below 5000 income, 39% of respondents were getting above 5000-10000 and 21%
of respondents were getting above 15,000 incomes. 24% of respondents are highly satisfied with the
organizational culture, 30% of respondents were satisfactory, 15% of respondents were moderate, 18% of
respondents were dissatisfactory and 13% of respondents were highly dissatisfactory. 24% of respondents are
highly satisfied with the organizational culture flexibility, 26% of respondents were satisfactory, 23% of
respondents were moderate, 15% of respondents were dissatisfactory and 12% of respondents were highly
dissatisfactory. Most of the respondents are satisfactory with the adequate communication to department. 67%
of respondents are felt need training programme. Most of the respondents are satisfied with the relationship to
manager. Most of the respondents are satisfied with the satisfaction level of their teams. Majority of the
respondents are satisfied of their skills and abilities.54% of the respondents are highly satisfied with the
motivation.54% of the respondents are highly satisfied with the employee retention.

SUGGESTION AND RECOMMENDATION:

Treat each employee with respect and as an individual. Provide fair compensation including benefits clearly
communicate expectations, goals, and rules. Let them know what is expected of them. Put them in places and
situations where they can succeed. Give honest feedback, both positive and negative. Actively listen to them
Celebrate successes, big and little. Make the workplace fun. Get them involved and keep them informed - give
them any information that tells them how their work fits into the overall company effort. Be flexible - whether
that means specifically providing flex time or just letting them leave work early for a personal matter when
appropriate. Provide training and show them advancement opportunities. Help them turn a job into a career.

48 K. Dhamodharan, Dr.A.Alagumalai
 International Journal of Engineering Technology, Management and Applied Sciences

www.ijetmas.com November 2016, Volume 4, Issue 11, ISSN 2349-4476

CONCLUSION:
The success and failure of any organization depend on the hard work put by the employees to achieve the
targets of the organization. It is a common observation that employees who spend a good amount of time in
the organization tend to know more about it and thus contribute effectively. They develop a sense of loyalty
towards their workplace and strive hard to live up to the expectations of the management.
There are several reasons as to why an employee decides to move on. Monetary dissatisfaction, a negative
environment at the workplace, dirty politics, complicated hierarchies, lack of challenging work, poor
supervision being the major ones. The organization has to focus on various motivational factors such as
rewards, compensation etc. finally it is concluded that the organization are maintaining various employee
retention measures to make reduce the dispute, stress and dislikes of employees and make them to work in
their organization for long period.

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4. Cole, C. L. (2000, August). Building loyalty. Workforce, 79, 42-47. Available EBSCO host full display.
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Website:
1. www.google.com
2. www.citehr.com
3. www.hrindia.com

49 K. Dhamodharan, Dr.A.Alagumalai