School of Management, NITW 1 Employee Engagement

Abstract
Employee engagement is the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. It is a positive attitude held by the employees towards the organization and its values. The project focuses on the employee engagement levels, to find the most significant factors of employee engagement and to identify the demographic influences on employee engagement. A sample of 50 consumers was personally surveyed using a structured questionnaire at Agon-Religare. The data was analyzed using descriptive analysis like cross tabulations, t-test, Factor analysis, Discriminant analysis. From the most important factors which are significant in building an effective engagement are Team Leader/Supervisor, Colleague/Team member, Recreational Activities, Work/Job related issues. It is also inferred that level of engagement is changed by level of designation.

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ACKNOWLEDGEMENT

I would like to express my sincere thanks toDr. C.S.P.Rao,HOD School of management, NITW who provided me an opportunity to work on this project.

I am deeply obliged to Mr. B.V.Vijay( CDM-AegonReligare) for his exemplary guidance and support without whose help this project would not have been success.

I would like to place on record my sincere gratitude and appreciation to my project guide Dr.K.Padma school of management, for her kind co-operation and guidance which enabled me to complete my project in the best way possible.

I would like to express my deep sense of honor & indebtedness to the fraternity of SOM for their guidance throughout the course work.

I also take this opportunity to express my deep gratitude to my loving parents & friends who have been a constant source of motivation and encouragement during this project.

(RAGHU

RAM N)

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Index
S.No Contents Page no

1 1.1 1.2 1.3 1.4 2 2.1 2.2 3 3.1 3.2 4 4.1 4.2 4.3 5 5.1 5.2 5.3 5.4

CHAPTER 1 Introduction Introduction Scope of the study Objectives of the study Research methodology CHAPTER 2 Profile Industry profile Company profile CHAPTER 3 Literature Survey Employee Engagement research review Employee Engagement A Conceptual model CHAPTER 4 Data analysis and Interpretation Analysis Part I Analysis Part II Analysis Part III CHAPTER 5 Conclusions Limitations Findings Suggestions Conclusion Bibliography Appendix

1 2 2 3 3 5 6 7 9 10 12 20 21 27 33 36 37 37 38 38 39 41

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List of Tables 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 4.1.10 4.1.11 4.1.12 4.1.13 Qualification of employees by Age Experience of the employees by Age Monthly income of employees by Qualification. Monthly income of the employees by Experience Hypothesis test for the factor-job/work related issues Hypothesis test for the factor-supervisor/Team leader Hypothesis test for the factor-Team member/Colleague Hypothesis test for the factor-Recreational Activities KMO and Bartlett's Testa Wilks Lambda Group Statistics Rotated Component Matrix Questionnaire

Page no. 21 22 23 24 25 26 26 27 28 34 39 41

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CHAPTER I INTRODUCTION

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1.1 INTRODUCTION Employee engagement is the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee. Thus Employee engagement is a barometer that determines the association of a person with the organization.

From the last few years employee engagement and its measurement is in vogue. In fact, there is a definite correlation between employee engagement and desired business results whether it is customer service, retaining talent, individual performance, team performance, business productivity, or even company-level financial performance.

Employee engagement levels have a direct impact on an employee's performance and consequently on the companies bottom-line. Also, each company is different; the factors that can affect its bottom-line results are also different considering the industry it's in.

PROBLEM DISCUSSION Today, in an industry like Insurance, where the target for employees is mainly sales and relies heavily on manpower. It is observed that monotony is set among the employees, which makes the employee retention tough for HR department. The single mantra of the employee to have a sustainable career growth is SELL!SELL! and SELL! .So the employees are feeling monotonous& dis-engaged about their job. So the employee retention & employee engagement is a big challenge for the HR.

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1.2 SCOPE OF THE STUDY The study is confined to employees of Aegon Religare, Hyderabad. A survey has been conducted among 50 employees of Aegon Religare.It takes into consideration of the primary data. 1.4 OBJECTIVES OF THE STUDY The main aim of the study is to accomplish the following objectives: y y To study the level of employee engagement in the organization. To identify the factors which are significant in building an effective employee engagement. y y To identify the demographic influences on the employee engagement. To further explore the employee engagement activities.

1.5 RESEARCHMETHODOLOGY Research Design A descriptive research design is adopted for this study since it describes the factors perceived by the participants, which help the company to build a stronghold in regard to the engaging of employees. Research Approach The emphasis of this study is both quantitative& qualitative, due to the fact that the aim was to gain deeper understanding of employees perception towards their employers. Futher more, the conclusions drawn are based on my own perceptions and experiences Sampling The convenience sampling method was used to select the sample of participants for this study and the total no of employees are 60 but the study is confined to 50 employees.

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Method and Tool of Data Collection A survey method for data collection was adopted. A printed questionnaire was being used as a research instrument to collect required information. The questionnaire consisted of 38 items of which 6 were demographic questions and the other 32 were open ended questions. The questionnaire for the study is enclosed in appendix. Quality Standards of the Research tool: Validity and Reliability For the purpose of increasing the construct validity in this study, I used structured interview and questionnaire to gather data. However the detailed responses from the interviews are not included in the analysis. To enhance reliability of this study i explained research process thoroughly. Data Processing, Analysis & Testing Data is processed with the help of computer software and Statistical Analysis is made with the help of SPSS(Statistical Package for Social Sciences). The results are presented in the form of graphs and rotation matrix tables. To test the results obtained by the analysis of the responses the T- test was used.

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CHAPTER II PROFILES

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2.1 INDUSTRY PROFILE Brief History of Insurance Sector The insurance sector in India has completed all the facets of competition from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again. The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately. Indian Insurance in India used to be tightly regulated and monopolized by state-run insurers. Following the move towards economic reform in the early 1990s, various plans to revamp the sector finallyresulted in the passage of the Insurance Regulatory and Development Authority (IRDA) Act of 1999. Significantly, the insurance business was opened on two fronts. Firstly, domestic privatesectorcompanies were permitted to enter both life and non-life insurance business. Secondly, foreigncompanies were allowed to participate, albeit with a cap on shareholding at 26%. With theintroduction of the 1999 IRDA Act, the insurance sector joined a set of other economic sectors onthe growth march. During the 2003 financial year1, life insurance premiums increased by an estimated 12.3% in realterms to INR 650 billion (USD 14 billion) while non-life insurance premiums rose 12.2% toINR 178 billion (USD 3.8 billion). The strong growth in 2003 did not come in isolation. Growth ininsurance premiums has been averaging at 11.3% in real terms over the last decade.

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2.2 COMPANY PROFILE AEGON Religare Life Insurance Company AEGON, an international life insurance, pension and investment company, Religare, a global financial services group and Bennett, Coleman & company, Indias largest media house, have come together to launch AEGON Religare Life Insurance Company Limited (ARLI). This venture is dedicated to build a profitable customer-centric business with scale, providing a work environment that fosters excellence and innovation. This joint venture will balance a local approach with the power of an expanding global operation. ARLI launched its pan-India operations in July, 2008 following a multi-channel distribution strategy with a vision to help people plan their life better. The fulfillment of this vision is based upon having a complete product suite, providing customised advice and enhancing the overall customer experience through superior service. ARLI has launched a suite of products that are focused on providing the customer with the means to meeting their long-term financial goals. At the same time product development has been founded on the tenet of providing the customer with great value. ARLI products such as AEGON ReligareiTerm Plan and AEGON Religare Invest Maximiser Plan have been ranked among the best in terms of value and have attracted many external accolades.

About AEGON As an international life insurance, pension and investment company, AEGON has businesses in over twenty markets in the Americas, Europe and Asia. With headquarters in The Hague, the Netherlands, AEGON companies employ approximately 28,000 people and serve some 40 million customers across the globe. The companys common shares are listed on three stock exchanges: Amsterdam, New York and London. AEGON has more than 160 years of experience with its roots going back to 1844. AEGON holds 26% equity in ARLI.

About Religare Enterprises Limited Religare Enterprises Limited (REL) is a global financial services group with a presence across Asia, Africa, Middle East, Europe and the Americas. In India, Religares largest market, the group offers a wide array of products and services ranging from insurance, asset

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management, broking and lending solutions to investment banking and wealth management. The group has also pioneered the concept of investments in alternative asset classes such as arts and films. With over 10,000 employees across multiple geographies, Religare serves over a million clients, including corporates and institutions, high net worth families and individuals, and retail investors. REL hold 44% equity in ARLI.

About Bennett, Coleman & Company Limited Bennett, Coleman & Company Limited (BCCL), part of the mammoth Times Group, is Indias largest media house. It reaches out to 2468 cities and towns all over India. The group owns and manages powerful media brands like The Times of India, The Economic Times, Maharashtra Times, Navbharat Times, Femina, Filmfare, Grazia, Top Gear, Radio Mirchi, Zoom, Times Now, Times Music, Times OOH, Private Treaties and indiatimes.com. All of its brands are multinational in outlook, traditional at heart and national in spirit. From the very first edition on November 3, 1838 the mammoth BCCL Group has come a long way. By way of the innovative venture of Times Private Treaties (http://www.timesprivatetreaties.com), the BCCL Group holds 30% equity in ARLI. Vision: To help people plan their life better. Promise: To delight our customers through a fresh approach, innovative solutions and seamless delivery. Values: Professional: Better understanding of customer needs .Imparting valuable advice and relevant solutions. Doing what we say. Forward Thinking: Refreshingly different ways to service .New solutions giving value for money .Anticipating customer needs. Vibrant: Energetic and involved. Being engaged and excited about our business. Empathetic: Being sensitive to the needs of the customers, with intuitive insights into their goals and priorities.

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CHAPTER III LITERATURE SURVEY

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3.1 Employee Engagement research review A Review of Current Research and Its Implications By John Gibbons Employee engagement is a heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or co-workers that, in turn, influences him/her to apply additional discretionary effort to his/her work. Meta-analysis of Drivers of Employee Engagement Over the past four years, 12 major research studies have been published that identify organizational factors that drive employee engagement. Reviewing the results of these studies was naturally complicated by the researchers different operating definitions of employee engagement. Not surprisingly, these studies altogether identified 26 separate factors that determine the degree to which individuals will be engaged. However, while these studies presented a wide array of definitions and drivers, some patterns did emerge across the studies. Eight different factors were identified as drivers for employee engagement by at least four of the studies. They are:

1) Trust and Integrity this driver applies to the degree to which the employee feels that members of the management team are concerned about the well-being of their employees, tell the truth, communicate difficult messages well, listen to employees and then follow through with action, and demonstrate the companys expressed goals and values through their own personal behavior. Reichheld (2001), Bates (2004), Baumruk (2004), Corporate Leadership Council (2004), Gubman (2004), Drizin (2005), and Towers Perrin-UK (2005), and Walker Information (2005).

2) Nature of the Job this driver refers to the day-to-day content and routine of the employees job and the degree to which he/she derives emotional and mental stimulation from it. This includes opportunities to participate in decision-making and autonomy. The ConferenceBoard (2003), Towers Perrin (2003), Bates (2004), Gubman (2004), Drizin (2005), and Towers Perrin-UK, and Walker Information (2005).

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3) Line-of-Sight Between Individual Performance and Company Performance this driver refers to how well the employee understands the companys goals, is aware of its overall performance, and, most importantly, knows how his/her individual contribution impacts this performance. Towers Perrin (2003), Bates (2004), Baumruk (2004), Corporate Leadership Council (2004), Drizin (2005), and Smythe (2005).

4) Career Growth Opportunities this is the degree to which an employee feels that there are future opportunities for career growth and promotion within the company and, to a lesser degree, is aware of a clearly-defined career path. Towers Perrin (2003), Bates (2004), Baumruk (2004), Gubman (2004), and Towers Perrin-UK (2005).

5) Pride about the Company this refers to the amount of self-esteem that an employee derives from being associated with his/her company. This driver has been linked to behaviors such as recommending the company to prospective customers and employees. Towers Perrin (2003), Bates (2004), The Corporate Leadership Council (2004), Towers Perrin-UK (2005), and Walker Information (2005)

6) Coworkers/Team Members this driver recognizes the significance of the influence that an employees colleagues have on his/her level of employee engagement. The Conference Board (2003), Towers Perrin (2003), Gubman (2004), Towers Perrin-UK (2005).

7) Employee Development as opposed to career growth opportunities, this driver refers to the degree to which an employee feels that specific efforts are being made by their company or manager to develop the employees skills. The Conference Board (2003), Baumruk (2004), Towers Perrin-UK (2005), and Walker Information (2005).

8) Personal Relationship with Ones Manager this is the degree to which an employee values the relationship that he/she has with his/her direct manager. This does not refer to professional or job-related aspects of their relationship. The Conference Board (2003), Bates (2004), Gubman (2004), and Towers Perrin-UK (2005).

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Indian Workers More Satisfied One of the reports by Business World in a HR Special Survey revealed that Indian workers are more satisfied among the global workers. Taking global figures into account, it can be said that Indian workers are among the most focused and satisfied in the world. Slightly more than a third (34 per cent) of the employees in India are fully engaged while 13 percent of them are disengaged. The economic growth in India is such that opportunities are aplenty for the respondent population. Therefore, pay and growth opportunities rate highly in their list of expectations. Table: Engagement levels of different counties Region Disengaged ( %) India South Africa North America Australia Europe SEA China Others Total 20 21 21 33 36 18 18 15 9 9 7 12 12 13 18 16 7 13 24 28 31 32 27 28 26 23 22 10 24 29 13 11 19 Honeymooners& Crash Hamsters(%) 13 14 12 & burn(%) 11 18 13 Almost engaged(%) 29 26 27 Fully engaged(%) 34 31 29

3.2 Employee Engagement A Conceptual model According to the research findings of Dr. Nitin Vazirani, Dean SIES College, the major aspects of employee engagement are as follows. Aspects of Employee Engagement Three basic aspects of employee engagement according to the global studies are:y The employees and their own unique psychological makeup and experience

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The employers and their ability to create the conditions that promote employee engagement

Interaction between employees at all levels.

Thus it is largely the organizations responsibility to create an environment and culture conducive to this partnership, and a win-win equation.

Categories of Employee Engagement

According to the Gallup the Consulting organization there are there are different types of people:

a) Engaged--"Engaged" employees are builders. They want to know the desired expectations for their role so they can meet and exceed them. They're naturally curious about their company and their place in it. They perform at consistently high levels. They want to use their talents and strengths at work every day. They work with passion and they drive innovation and move their organization forward b) Not Engaged---Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes they are expected to accomplish. They want to be told what to do just so they can do it and say they have finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not-engaged tend to feel their contributions are being overlooked, and their potential is not being tapped. They often feel this way because they don't have productive relationships with their managers or with their coworkers. c) Actively Disengaged--The "actively disengaged" employees are the "cave dwellers.They are "Consistently against Virtually Everything." They're not just unhappy at work; they're busy acting out their unhappiness. They sow seeds of negativity at every opportunity. Every day, actively disengaged workers undermine what their engaged coworkers accomplish. As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization's functioning.

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Factors Leading to Employee Engagement.

Studies have shown that there are some critical factors which lead to Employee Engagement. Some of them identified are

a) Career Development- Opportunities for Personal Development

Organizations with high levels of engagement provide employees with opportunities to develop their abilities, learn new skills, acquire new knowledge and realize their potential. When companies plan for the career paths of their employees and invest in them in this way their people invest in them.

b) Career Development Effective Management of Talent

Career development influences engagement for employees and retaining the most talented employees and providing opportunities for personal development.

c) Leadership- Clarity of Company Values Employees need to feel that the core values for which their companies stand are Unambiguous and clear.

d) Leadership Respectful Treatment of Employees Successful organizations show respect for each employees qualities and contribution regardless of their job level.

e) Leadership Companys Standards of Ethical Behaviour A companys ethical standards also lead to engagement of an individual

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f) Empowerment Employees want to be involved in decisions that affect their work. The leaders of high engagement workplaces create a trustful and challenging environment, in which employees are encouraged to dissent from the prevailing orthodoxy and to input and innovate to move the organization forward. g) Image How much employees are prepared to endorse the products and services which their company provides its customers depends largely on their perceptions of the quality of those goods and services. High levels of employee engagement are inextricably linked with high levels of customer engagement. Other factors

a) Equal Opportunities and Fair Treatment The employee engagement levels would be high if their bosses (superiors) provide equal opportunities for growth and advancement to all the employees b) Performance appraisal Fair evaluation of an employees performance is an important criterion for determining the level of employee engagement. The company which follows an appropriate performance appraisal technique (which is transparent and not biased) will have high levels of employee engagement. c) Pay and Benefits The company should have a proper pay system so that the employees are motivated to work in the organization. In order to boost his engagement levels the employees should also be provided with certain benefits and compensations.

d) Health and Safety Research indicates that the engagement levels are low if the employee does not feel secure while working. Therefore every organization should adopt appropriate methods and systems for the health and safety of their employees.

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e) Job Satisfaction Only a satisfied employee can become an engaged employee. Therefore it is very essential for an organization to see to it that the job given to the employee matches his career goals which will make him enjoy his work and he would ultimately be satisfied with his job.

f) Communication The company should follow the open door policy. There should be both upward and downward communication with the use of appropriate communication channels in the organization. If the employee is given a say in the decision making and has the right to be heard by his boss than the engagement levels are likely to be high.

g) Family Friendliness A persons family life influences his wok life. When an employee realizes that the organization is considering his familys benefits also, he will have an emotional attachment with the organization which leads to engagement

h) Co-operation If the entire organization works together by helping each other i.e. all the employees as well as the supervisors co-ordinate well than the employees will be engaged.

Employee Engagement Approaches A successful employee engagement strategy helps create a community at the workplace and not just a workforce. When employees are effectively and positively engaged with their organization, they form an emotional connection with the company. This affects their attitude towards both their colleagues and the companys clients and improves customer satisfaction and service levels. There's more than one way to improve the level of employee engagement in a company. In fact, there are many different things that companies not only can do, but need to do. Most organizations have a range of practices to improve the engagement level of their employees. One of the pitfalls of any employee engagement programme is a failure whether real or perceived - to follow through on the initial that the company is felt by their employees If your

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organization is to succeed you must look use as many different approaches as you can. Here is a round-up of some of the best approaches.

Employee engagement approaches for new employees Best practice recommends starting right at the selection or recruitment stage with: y y y The right person and giving them a realistic job preview A strong induction and orientation programme Rigorous training and development, from technical to soft skills to leadership development programmes. y Regular technical/soft skill updates o Certification programmes to drive people towards excellent performance

Employee engagement approaches for all employees Beyond initial recruitment and induction, employee engagement activities can be broken into a number of groups. These include: y y y y y Communications activities Reward schemes Activities to build the culture of the organization Team building activities Leadership development activities

Communications activities These help employees find out what is going on within the company outside of their immediate team. They also help to create an environment of trust and openness within the organization where they are able to talk openly. Employees who feel they are listened to are able to express dissatisfaction and work together to resolve their causes, without it affecting their performance. The various communications approaches include: y Communication forums to provide regular feedback to all people, including team meetings, conferences and away days

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y y

In-house magazines On-line communications, including discussion boards and blogs by company personnel including senior management

y y y

Monthly updates on corporate goals and directions Regular employee opinion and satisfaction surveys Active soliciting of employee feedback, including opinions and pet peeves

Reward schemes

Studies have long shown that, while money in itself is not a motivating factor, the absence of financial reward can be a significant demotivator. Typical approaches include: y y y y y Compensation and benefit programmes. Stock ownership and profit sharing. Recognition programmes. Idea collection schemes linked to rewards for idea generation. Long service and good performance awards.

Activities to develop the culture of the organization Giving employees a feeling of belonging is crucial in creating a thriving organization that people feel committed to and others want to join. Common approaches include: y y y y Clear and humane HR policies. Pro-social corporate objectives and Corporate Social Responsibility. Equal opportunities policies and practices. Initiatives to maintain the quality of work life and a balance between

personal/professional lives. y y Developing a safe, clean and inspiring work environment. Demonstrating a commitment to employees well-being.

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Team building activities Culture-building activities are great for generating a feeling of belonging, but all organizations are built out of smaller teams who can get on and work together. Popular approaches include: y Small team recreational activities, such as bowling, skating, trips to the cinema (or the pub!). y y Social activities, such as family gatherings and barbeques. Community outreach activities such as volunteering and fund-raising.

Leadership development activities A great organization needs not just a great leader, but people with leadership skills. This stimulates good performance, boosts creativity and eases succession planning. Good practices include: y y y y y y Effective Leadership. Effective Performance Management. Fair evaluation of performance. Empowerment through effective delegation. Coaching and mentoring activities to give honest feedback by supervisors and peers. An open and transparent culture to empower people and develop entrepreneurs.

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CHAPTER IV DATA ANALYSIS AND INTERPRETATION

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Analysis Part I The data collected from the employees of Aegon-Religare were analyzed using MS-Excel and SPSS. The data analysis techniques included the chi-square test, cross tabulations, factor analysis and t-test, discriminant analysis. Demographic profile of respondents: Table4.1.1: Qualification of employees by Age

Qualification Age Graduation Post-Graduation 20-25 4 25-30 13 30-35 2 Total 19 5 24 2 31 Total 9 37 4 50

Inference By the cross tabulation of the demographic factors Age & Qualification we can infer that the age of 74 % the employees lies in between 25-30 & 62% of the employees are post graduates.

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Table 4.1.2: Experience of the employees by Age

Experience Age < 1 year 1-2 year 2-3 year 3-4 year 20-25 1 25-30 1 30-35 0 Total 2 4 1 0 5 2 5 1 8 2 5 0 7
Above 4 year

Total 9 37 4 50

0 25 3 28

Inference: 50 % of the employees are having an experience of more than 4 years& falls under the age group of 25-30. By this we can infer that the retention levels in the company are high.

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Table4.1.3:Monthly income of employees by Qualification.

Qualification Monthly income < 10,000 10,000-20,000 20,000-30,000 Above 30,000 Total Graduation 2 14 3 0 19 Post-Graduation Total 0 16 9 6 31 2 30 12 6 50

Inference: By the cross tabulation of monthly income & qualification we can infer the company gives a higher priority for educational qualification & in general they earn higher monthly incomes.

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Table 4.1.4: Monthly income of the employees by Experience

Experience Monthly income < 10,000 10,000-20,000 20,000-30,000 Above 30,000 Total <1year 1-2 year 2-3 year 3-4 year Above 4 year 2 2 0 0 4 0 4 1 0 5 0 4 3 1 8 0 3 4 0 7 0 17 4 5 26 Total 2 30 12 6 50

Inference: From the above cross tabulation we can infer that work experience is proportional to the monthly income of the employees.

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4.1 Hypothesis Testing A statistical hypothesis test is a method of making statistical decisions using experimental data. In statistics, a result is called statistically significant if it is unlikely to have occurred by chance. The phrase "test of significance" was coined by Ronald Fisher: "Critical tests of this kind may be called tests of significance, and when such tests are available we may discover whether a second sample is or is not significantly different from the first." T- Test Based on the findings of the Factor analysis, the most important factors are Supervisor, Team member, Job related issues & Recreational activities, so these factors are further tested by using T-test. Null Hypothesis: Employee dont know what is expected of him in his job Alternative Hypothesis: Employee knows what is expected of him in his job Table 4.1.5: Hypothesis test for the factor-job/work related issues

T know_what_is_expected _of_me 46.998

Df 49

Sig. (2-tailed) .000

Since the calculated t value is greater than the tabulated values the null hypothesis is rejected. Hence with 95% confidence & 49 degrees of freedom we can say employee knows what is expected of him in his job.

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2. Null Hypothesis: Supervisor doesnt cares about employee as a person. Alternative Hypothesis: Supervisor cares about employee as a person. Table 4.1.6: Hypothesis test for the factor-supervisor/Team leader

T supervisor_cares_abAbo ut_employee_as_person 30.998

Df 49

Sig. (2-tailed) .000

Since the calculated t value is greater than the tabulated values the null hypothesis is rejected. Hence with 95% confidence & 49 degrees of freedom we can say Supervisor cares about employee as a person 3. Null Hypothesis: Employees doesnt have best friend at work Alternative Hypothesis: Employees have best friend at work Table 1.1.7: Hypothesis test for the factor-Team member/Colleague

T employees_have_best_fr iend_at_work 26.863

Df 49

Sig. (2-tailed) .000

Since the calculated t value is greater than the tabulated values the null hypothesis is rejected. Hence with 95% confidence & 49 degrees of freedom we can say Employees have best friend at work.

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4 Null Hypothesis: Recreational facilities provided by the company are not better than the peer companies.. Alternative Hypothesis: Recreational facilities provided by the company are better than the peer
companies..

Table 1.1.8: Hypothesis test for the factor-Recreational Activities

T RC_provided_by_by_co mpany_are_better_than_ 27.394 the_peer_companies

Df

49

Since the calculated t value is greater than the tabulated values the null hypothesis is rejected. Hence with 95% confidence & 49 degrees of freedom we can sayRecreational facilities provided
by the company are better than the peer companies..

Analysis Part-II 4.2 Factor Analysis Factor analysis is a statistical method used to describe variability among observed variables in terms of a potentially lower number of unobserved variables called factors. In other words, it is possible, for example, that variations in three or four observed variables mainly reflect the variations in a single unobserved variable, or in a reduced number of unobserved variables. Factor analysis searches for such joint variations in response to unobserved latent variables. The observed variables are modeled as linear combinations of the potential factors, plus "error" terms. The information gained about the interdependencies between observed variables can be used later to reduce the set of variables in a dataset.

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The analysis will isolate the underlying factors that explain the data. Factor analysis is an interdependence technique. The complete set of interdependent relationships is examined. There is no specification of dependent variables, independent variables, or causality. Factor analysis assumes that all the rating data on different attributes can be reduced down to a few important dimensions. This reduction is possible because the attributes are related. The rating given to any one attribute is partially the result of the influence of other attributes. The statistical algorithm deconstructs the rating (called a raw score) into its various components, and reconstructs the partial scores into underlying factor scores. The degree of correlation between the initial raw score and the final factor score is called a factor loading. There are two approaches to factor analysis: "principal component analysis" (the total variance in the data is considered); and "common factor analysis" (the common variance is considered)

Table 4.1.9 : KMO and Bartlett's Testa Kaiser-Meyer-Olkin Adequacy. Bartlett's Sphericity Test of Approx. Chi-Square Df Sig. a. Based on correlations The value of KMO sampling adequacy 0.833 is greater than 0.5, which implies that the sample is also adequate for factor analysis. Rotated Factor Matrix: In this table we will not consider correlations that are 0.5 or less. This makes the output easier to read by removing the clutter of low correlations that are probably not meaningful anyway. On applying the factor analysis, using the vari-max method of rotation, 5 factors were generated, preserving 59.9 percent variability of the original data. The factors generated, their constituents, and their respective factor loadings have been shown in Table4.10. Measure of Sampling .833 1.517E3 496 .000

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The Rotated Component Matrix table is enclosed in the Appendix. Inference Factor 1 Team leader: The factors include constructs like my team leader treats fairly, freely approach TL, good communication between team & TL, TL cares employee as a person. Since all these factors are mainly related with Team Leader of the team a nomenclature has been given to accommodate all these constructs. Factor 2 Recreational Activities: The factors include constructs like Recreational activities makes employees look forward to work, plays a major role in choosing stay at religare , Recreational activities are better than peer companies. Since all these factors are mainly related with Recreational activities, so the nomenclature has been given to accommodate all these construct. Factor 3 Work related: The factors include constructs like have the materials and equipment need to do the job, know what is expected in the job, workload is equally distributed, company recognizes whenever they do a good job, trust what management tells. Factor 4: Colleagues: The factors include construct like colleagues help each other when needed, colleagues share information and new ideas, colleagues do their best, enjoy working with colleagues. Since all these factors are mainly related with Colleagues, so the nomenclature has been given to accommodate all these construct. The Screen plot graph Figure 1 show the eigen value against the component numbers. The factors that are considered have the eigen values greater than one. From the sixth factor onwards we can see that the line is almost coming down and becoming flat which means that the successive factor is accounting for smaller and smaller amounts of the total variance.

School of Management, NITW 35 Employee Engagement

4.3 Analysis Part -III Discriminant Analysis Linear discriminant analysis (LDA) and the related Fisher's linear discriminant are methods used in statistics and machine learning to find a linear combination of features which characterize or separate two or more classes of objects or events. The resulting combination may be used as a linear classifier, or, more commonly, for dimensionality reduction before later classification.

LDA is closely related to ANOVA (analysis of variance) and regression analysis, which also attempt to express one dependent variable as a linear combination of other features or measurements. In the other two methods however, the dependent variable is a numerical quantity, while for LDA it is a categorical variable (i.e. the class label). Logistic regression and probit regression are more similar to LDA, as they also explain a categorical variable. These

School of Management, NITW 36 Employee Engagement

other methods are preferable in applications where it is not reasonable to assume that the independent variables are normally distributed, which is a fundamental assumption of the LDA method. LDA is also closely related to principal component analysis (PCA) and factor analysis in that both look for linear combinations of variables which best explains the data. LDA explicitly attempts to model the difference between the classes of data. PCA on the other hand does not take into account any difference in class, and factor analysis builds the feature combinations based on differences rather than similarities. Discriminant analysis is also different from factor analysis in that it is not an interdependence technique: a distinction between independent variables and dependent variables (also called criterion variables) must be made.

Table 4.11: Wilks' Lambda Test of Functi Wilks' on(s) Lambda 1 .206 Chi-square Df 50.591 32 Sig. .020

School of Management, NITW 37 Employee Engagement

Inference

Since the WilksLambda value is .206 which lies between 0-1, hence the above data is adequate to do Discriminant analysis. Using discriminant analysis and considering designation as a grouping variable, two groups were formed. The Group statistics of the discriminant analysis is enclosed in the Appendix. When comparing the means of the designation 1 & designation 2, all the means designation 2 are greater than the means of designation 1.

Designation 1 Relationship Manager Designation 2 - Business Development Manager So the level of employee engagement of Business Development Managers is higher when compared with the engagement levels of Relationship Managers.

School of Management, NITW 38 Employee Engagement

CHAPTER V CONCLUSIONS

School of Management, NITW 39 Employee Engagement

5.2 FINDINGS y y y y y 50% of the employees are fully engaged (on a 5 point scale, the score is between 4&5). 32% of the employees are almost engaged (on a 5 point scale, the score is between 3&4). 18% of the employees are not engaged (on a 5 point scale, the score is between 2& 3). Employee retention levels are high in the company because of the effective HR practices. The most influencing factors for the employee engagement are The first factor a) Team leader/Supervisor play an important role in employee engagement.The employees in the Aegon-Religare are very much satisfied with their team leaders/supervisors. b) The second factor Recreational Activities play a major role in employee engagement. The Recreational Activities in the organization are not up to the mark and are mostly confined to the high level executives. c) The third factor colleagues also play an important in employee engagement. The employees are satisfied with their colleagues. d) The fourth factor work/job related issues play a major role employee engagement. The employees are highly satisfied with their work/job related issues. y Business Development Managers are more engaged when compared with Relationship Managers. y y The HR Communication at Aegon-Religare is awesome. The Reward Schemes at Aegon-Religare are satisfactory.

5.1 LIMITATIONS y y y Duration of the project being short the study could not be a comprehensive one. Accuracy of the study is purely based on the information as given by the respondents. Due to the time constraint some of the respondents might have forced them to give casual response without evaluating the questions seriously. y Some of the respondents are more distinct while some are very liberal in answering the questions posed to them. They are unable to maintain a fair distinction between two individuals.

School of Management, NITW 40 Employee Engagement

The questions posed during interview are limited with in the staff of AegonReligare.

The respondents were restricted to 60 as the job profile of the employees is purely sales, so they are busy in reaching their target. 5.3 SUGGESTIONS y Today, in an industry like Insurance, which is sales & target intensive and relies heavily on manpower, a powerful strategy is needed to retain the employees. y Recreational Activities plays a major role in employee engagement, so the HR department should design excellent recreational activities to engage the employees. y As the engagement levels of Relationship Managers are less when compared with Business Development Managers, so measures should be taken to increase the engagement levels of Relationship Managers. y The Team Leader/Supervisor should show a great empathy towards the employees.

5.4 Conclusion Employee Engagement is the buzz word term for employee communication. It is a positive attitude held by the employees towards the organization and its values. It is rapidly gaining popularity, use and importance in the workplace and impacts organizations in many ways. The HR Department at Aegon-Religare should concentrate on the factors like Team Leader, Colleagues/Co-workers relationships, Recreational Activities,Work/Job related issues. I would hence conclude that raising and maintaining employee engagement lies in the hands of the HR department of Aegon-Religare and requires a perfect blend of time, effort, commitment and investment to craft a successful endeavor.

School of Management, NITW 41 Employee Engagement

Bibliography

www.siescoms.edu/images/pdf/reserch/.../employee_engagement.pdf

www.opcuk.com/.../examples_of_employee_engagement_approaches.pdf

www.humancapitalonline.com/hc_apr_10.pdf

www.artsusa.org/pdf/events/2005/conv/gallup_q12.pdf

www.gallup.com/consulting/52/employee-engagement.aspx

www.hranexi.com/Employee_Engagement_Report_2008.pdf

Book References  Naresh K. Malhotra (2008), Marketing Research- an Applied Orientation, New Delhi, Pearson Education, Inc. Magazine References: Human Capital (Vol.13.No.11 April 2010): By the barometer-by Arya Shikari Business world (April 2008): Engage the employee.

School of Management, NITW 42 Employee Engagement

Appendix Group Statistics

Designation Relationship Manager Mean 1 Have_materials_equip mment know_what_is_expecte d_of_me workload_is_equally_di stributed feel_competent_fully_a ble_handle_job proud_to_work_at_this _company if_do_goodwork_make _more_money company_recognizes_p raises_me happy_with_benefits_p ackage_offered aware_of_promotion_o pportunities clearly_established_car eer_path promotions_handled_fa irly 4.0667 Std. Deviation .82768 Business Development Manager Mean 4.2500 Std. Deviation .55012

4.0333

.61495

4.4000

.59824

3.2667

1.20153

4.0000

.72548

3.7667

1.35655

4.6000

.50262

4.1000

.88474

4.6500

.58714

3.9000

1.09387

4.7000

.47016

3.7333

1.11211

4.0500

.88704

3.5000

1.27982

4.2000

.61559

3.5333

1.04166

4.1000

.85224

3.3333

1.24106

4.1000

.85224

3.3000

.95231

4.3000

.65695

School of Management, NITW 43 Employee Engagement

last_year_had_opprtunit ies_to_learn_grow colleagues_help_when_ needed colleagues_i_share_info _new_ideas my_coworker_do_their _best enjoy_working_with_c oworkers my_TL_treats_me_fairl y freely_approach_TL_wi th_problems my_TL_handles_my_w

3.1667

.91287

4.1500

.74516

3.6667

1.02833

4.4500

.60481

3.7333

1.01483

4.3000

.47016

3.7667

1.07265

4.1500

.58714

3.6333

1.09807

4.3000

.57124

3.6333

1.12903

4.5500

.60481

3.7333

1.25762

4.6000

.59824

ork_related_issues_satis 3.7333 factorily good_communiction_be tween_me_TL my_TL_cares_about_m e_as_person i_trust_what_my_mana gement_tells_me feel_free_to_offer_com ments_suggestions 3.9000

1.17248

4.4000

.68056

1.18467

4.6000

.59824

3.8667

1.04166

4.5000

.60698

3.6333

1.03335

4.2000

.61559

3.4000

1.06997

3.9000

.71818

School of Management, NITW 44 Employee Engagement

actions_are_taken_on_s uggestions_given_by_ me management_cares_em ployees_at_all_levels comfortable_in_my_pla ce_of_work company_provides_goo d_transportation i_have_best_friend_at_ work company_cares_my_se curity_health Recreational_activities_ make_me_look_forwar 3.7333 d_to_work RC_play_major_role_in _choosing_my_stay_at_ 3.4333 religare RC_provided_by_my_c ompany_are_as_good_t han_the_peer_compani es 3.4000 1.10172 3.4000 .82078 1.07265 3.5000 .76089 .69149 3.7500 .63867 3.3667 1.09807 4.1500 .74516 3.3333 .92227 3.8000 .69585

3.8333

.91287

4.4000

.50262

3.0000

.83045

2.9500

1.14593

3.2333

.89763

4.1500

.74516

3.6000

1.06997

4.1500

.67082

School of Management, NITW 45 Employee Engagement

Table 4.1.12 Rotated Component Matrix

Component 1 Have_materials_equipm ment know_what_is_expected_ of_me workload_is_equally_dist ributed feel_competent_fully_abl e_handle_job proud_to_work_at_this_c ompany if_do_goodwork_make_ more_money company_recognizes_pra ises_me happy_with_benefits_pac kage_offered aware_of_promotion_opp ortunities clearly_established_caree r_path promotions_handled_fairl y .124 2 .066 3 .799 4 -.044 5 .004

.208

.195

.540

.265

-.091

.285

.341

.595

.349

.248

.271

.549

.489

.360

.174

.303

.579

.400

.237

.142

.306

.522

.295

.240

.288

.140

.439

.587

.334

.252

.430

.382

.477

.355

.387

-.050

.785

.136

.345

.085

.144

.750

.316

.264

.281

.410

.647

.154

.223

.173

School of Management, NITW 46 Employee Engagement

last_year_had_opprtuniti es_to_learn_grow colleagues_help_when_n eeded colleagues_i_share_info_ new_ideas my_coworker_do_their_b est enjoy_working_with_co workers

.414

.762

-.021

-.046

.042

.256

.335

.287

.634

.192

.415

.279

.078

.764

.128

.248

.223

.513

.550

.258

.542

.146 .290 .259

.129 .230 .356

.732 .355 .272

-.023 -.030 .108

my_TL_treats_me_fairly .769 freely_approach_TL_wit h_problems my_TL_handles_my_wor k_related_issues_satisfact .868 orily good_communiction_bet ween_me_TL my_TL_cares_about_me _as_person i_trust_what_my_manage ment_tells_me feel_free_to_offer_comm ents_suggestions actions_are_taken_on_su ggestions_given_by_me management_cares_empl oyees_at_all_levels .701 .776

.177

.104

.244

.099

.073

.594

.112

.125

.771

.102

.261

.136

.036

.437

.283

.516

.226

.402

.361

.315

.331

.344

.513

.373

.304

.178

.465

.402

.381

.503

.426

.314

.372

School of Management, NITW 47 Employee Engagement

comfortable_in_my_plac e_of_work company_provides_good _transportation i_have_best_friend_at_w ork company_cares_my_secu rity_health Recreational_activities_

.691

.336

.053

.232

.197

.169

.413

.304

-.102

.468

.286

.554

.339

.359

.209

.237

.509

.494

.236

.461

make_me_look_forward_ -.154 to_work RC_play_major_role_in_ choosing_my_stay_at_rel .088 igare RC_provided_by_my_co mpany_are_as_good_tha .179 n_the_peer_companies

-.190

-.197

.095

.680

.332

.127

.043

.843

.302

.187

.140

.802

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations.

School of Management, NITW 48 Employee Engagement

EMPLOYEE ENGAGEMENT QUESTIONNAIRE All information given by you will be handled with extreme caution and confidentiality will be maintained. Kindly fill in all details as per instructions given. Personal Particulars 2. Age: A) 20-25 B) 25-30 C) 30-35 D) 35-40 E) >40 4. Monthly Income: A) Below Rest. 10,000 B) 10,000- 20000 C) 20,000-30000 D) Above 30,000 5. Education Qualification: A) Under graduation B) Post graduation 6. Marital Status A) Married B) Unmarried 7. Years of experience: A) Less than 1yr B) 1-2 yrs C) 2-3 yrs D) 3-4 yrs E) Above 4yrs 8) Designation :

Please tick mark the relevant answer as provided against each question. Work Statement 1 I have the materials and equipment I need to do my job efficiently I know what is expected of me in my job Workload is distributed equally throughout our department or unit I feel competent and fully able to handle my job I am proud to say that I work at this company Strongly disagree (1) Disagree (2) Neutral (3) Agree (4) Strongly Agree (5)

2. 3.

4 5

School of Management, NITW 49 Employee Engagement

Rewards and Recognition Strongly disagree (1) 1 If I do good work I can count on making more money My company recognizes or praises me whenever I do a good job. I am happy with the benefits package offered at Aegon Religare. Disagree Neutral Agree Strongly Agree (2) (3) (4) (5)

Statement

2.

3.

Opportunities Strongly disagree (1) 1 I am aware of the promotion opportunities in my company I have a clearly established career path at my company In general, promotions are handled fairly at my company 4 In the last year, I have had opportunities to learn and Grow. Disagree Neutral Agree Strongly Agree (2) (3) (4) (5)

Statement

2. 3.

School of Management, NITW 50 Employee Engagement

Team Work Strongly disagree (1) 1 The people I work with help each other when needed. My co-workers and I share information and new ideas. My co-workers do their best. I enjoy working with my coWorkers. Disagree Neutral Agree Strongly Agree (2) (3) (4) (5)

Statement

2.

3. 4

Immediate Supervisor Strongly Disagree Neutral disagree (1) 1 2. 3. 4 My TL/Manager treats me fairly I can freely approach my TL/Manager with problems My TL handles my workrelated issues satisfactorily There is good communication between me and my superior. My supervisor cares about me as a person (2) (3) Agree Strongly Agree (4) (5)

Statement

School of Management, NITW 51 Employee Engagement

Communication Strongly Disagree Neutral disagree (1) 1 I can trust what management tells me I feel free to offer comments and suggestions I feel that actions are taken on suggestions given by me. Management care for all its employees at all levels (2) (3) Agree Strongly Agree (4) (5)

Statement

2.

3.

Quality of Life Strongly Disagree Neutral disagree (1) 1 I am comfortable in my place of work My company provides me good transportation facilities. I have a best friend at work. My company cares for my security and health. (2) (3) Agree Strongly Agree (4) (5)

Statement

2.

3 4.

School of Management, NITW 52 Employee Engagement

Recreational Activities Strongly Disagree Neutral disagree (1) 1 The recreational activities( Theme days, picnics, contests, etc) make me look forward to work Recreational activities play a major role in my choosing to stay at Aegon Religare. Recreational facilities provided by my company are as good/better than the peer companies. (2) (3) Agree Strongly Agree (4) (5)

Statement

3.