Final Project draft

EMPLOYEE Turn over IN Private Sector

CONTENTS

1. Introduction Need of the study Scope of the study 2. Research methodology Objective of the study Research methodology (Sample size, Instrument used, Methods of data collection) Scope of the study limitations 6. Descriptive work 7. Data Analysis 8. Suggestion and Conclusions 9. Bibliography 10. References 11.Appendices

12. Checklist of the items in the project

Introduction
Employee turnover is one of the largest though widely unknown costs an organization faces. While companies routinely keep track of various costs such as supplies and payroll, few take into consideration how much employee turnover will cost them: Ernst & Young estimates it costs approximately $120,000 to replace 10 professionals. According to research done by Sibson & Company, to recoup the cost of losing just one employee a fast food restaurant must sell 7,613 combo meals at $2.50 each. Employee turnover costs companies 30 to 50% of the annual salary of entry-level employees, 150% of middle-level employees, and up to 400% for upper level, specialized employees. Now that so much is being done by organizations to retain its employees. Why is retention so important? Is it just to reduce the turn over costs ? Well, the answer is a definite no. Its not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached. Retention involves five major things: Compensation Environment Growth Relationship

 Support

Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind:

Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes

Basic wage House rent allowance Dearness allowance City compensatory allowance Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employees performance and his contribution to the organization. Bonus: Bonuses are usually given to the employees at the end of the year or on a festival. Economic benefits: It includes paid holidays, leave travel concession, etc. Long-term incentives: Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's start up stage.

Health insurance: Health insurance is a great benefit to the employees. It

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

After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc. Miscellaneous compensation: It may include employee assistance

programs (like psychological counselling, legal assistance etc), discounts on company products, use of a company cars, etc. Employers And Their Key Drivers To Attract And Retain Talent Employers Key Drives To Attract And Retain Talent Procter and Gamble India Early responsibilities in career Flexible and transparent organizational culture Global opportunities through a variety of exposure and diverse experiences Performance Recognition American Express (India) Strong global brand Value-based environment Pioneer in many people practices

 NTPC Learning and growth opportunities Competitive rewards Opportunity to grow, learn and implement

Strong social security and employee welfare performance- oriented culture.

Johnson & Johnson Strong values of trust, caring fairness, and respect within the organization Freedom to operate at work Early responsibility in career Training and learning opportunities Visible, transparent and accessible leaders Competitive rewards Innovative HR programs and practices Glaxo Smith Kline Consumer Healthcare Performance-driven Rewards Its belief in Growing our own timber Comprehensive development and learning programs Flat organization, where performance could lead to very quick progression Challenging work context Competitive rewards

Exhaustive induction and orientation program

Tata Steel

 Organization philosophy and culture Job stability Freedom to work and innovate Colgate Palmolive India Company brand Open , transparent, and caring organization Management according to the managing with respect to guiding principles Training ad development programs Structured career planning process Global career opportunities Wipro Companys brand as an employer Early opportunities for growth High degree of autonomy Value compatibility Innovative people program Indian Oil Corporation Company brand image Work ethics Learning and growth opportunities Challenging work assignments Growing organization

 TCS The group brand equity Strong corporate governance and citizenship Commitment to learning and development Best in people practices Challenging assignments Opportunity to work with fortune 500 clients Organization Environment It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets. People want to work for an organization which provides Appreciation for the work done Ample opportunities to grow A friendly and cooperative environment A feeling that the organization is second home to the employee Organization environment includes Culture Values Company reputation Quality of people in the organization Employee development and career growth Risk taking Leading technologies

 Trust Types of environment the employee needs in an organization

Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc. Support environment: Organization can provide support in the form of work-life balance. Work life balance includes:

Flexible hours Telecommuting Dependent care Alternate work schedules Vacations

Wellness Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect. Growth and Career Growth and development are the integral part of every individuals career. If an employee can not foresee his path of career development in his current organization, there are chances that hell leave the organization as soon as he gets an opportunity. The important factors in employee growth that an employee looks

for himself are:

Work profile: The work profile on which the employee is working

should be in sync with his capabilities. The profile should not be too low or too high.

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

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

Communications skills Technical skills In-house processes and procedures improvement related skills or customer satisfaction related skills Special project related skills Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees. Importance of Relationship in Employee Retention Program Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in

terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employees interest and he becomes demotivated. It leads to less satisfaction and eventually attrition. A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind. Respect for the individual: Respect for the individual is the must in the organization.

Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs and plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates.

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

Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise hell feel useless and will be dissatisfied.

Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised. Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and hell show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc.

Individual development: Taking proper care of employees includes acknowledgement to the employees dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc.

Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones.

Support Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation. Employers can also provide valuable feedback to employees and make them feel valued to the organization.

The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance Programs, conseling services, etc Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows: By providing feedback

 By giving recognition and rewards By counseling them By providing emotional support

RESEARCH METHODOLOGY Research Design: The research design indicates the type of research methodology under taken to

collect the information for the study. The researcher used both descriptive and analytical type of research design for his research study. The main objective of using descriptive research is to describe the state of affairs as it exits at present. It mainly involves surveys and fact finding enquiries of different kinds. The researcher used descriptive research to discover the characteristics of customers. Descriptive research also includes demography characteristic of consumer who use the product. The researcher also used analytical research design to analyze the existing facts from the data collected from the customer. Area of study: The area of study is confined to employees of GEMINI WIPRO LTD,Mumbai Research instrument: The Structured questionnaire is used as the research instrument for the study.

Questionnaire Design: The questionnaire framed for the research study is a structured questionnaire in

which all the questions are predetermined before conducting the survey. The form of question is of both closed and open type. The scales used to evaluate questions are: Dichotomous scale (Yes or No)

Likert 5 point scale (Highly satisfied, satisfied, Neither Satisfied nor dissatisfied, Dissatisfied, Highly dissatisfied)

Category scale (Multiple items) Ranking type (R1, R2, R3) The questionnaire for the research was framed in a clear manner such that it enables the respondents to understand and answer the question easily. The questionnaire was designed in such a way that the questions are short and simple and is arranged in a logical manner. Pilot study: It is appropriate to conduct pilot survey to check the reliability of the questionnaire. So pilot study was conducted on 5 respondents which is a 10% of the sample.

Sampling design:

A Sample design is a definite plan for obtaining a sample from a given population. It is the procedure used by the researcher in selecting items for the sample. Sample size: Sample size=125 samples, variance and confidence methods are used for determining sample size. Sampling Technique: The researcher adopted simple random sampling for the study.

DATA COLLECTION METHOD Primary data: Primary data is the new or fresh data collected from the respondents through structured scheduled questionnaire. Secondary data: The secondary data are collected through the structured questionnaire, literature review and also from the past records maintained by the company. LIMITATIONS OF THE STUDY 1. The findings of the study are subjected to bias and prejudice of the respondents. 2. Area of the study is confined to the employees in Mumbai only. 3. Time factor can be considered as a main limitation. 4. The findings of the study are solely based on the information provided by the respondents. 5. The accuracy of findings is limited by the accuracy of statistical tools used for analysis. 6. Findings of the research may change due to area, demography, age condition of economy etc.

Analysis and Interpretation of data 1. PERCENTAGE ANAYLSIS 2. AWARENESS OF HR POLICIES

EMPLOYEES SATISFACTION REGARDING MONETARY BENEFITS PROVIDED BY THE COMPANY. Retention Management: Abstract: Background: retention management is a highly topical subject and an important dilemma many organizations might face in the future, if not facing it

already. We believe that the leader plays a key role in employee retention and retention management. The concept of retention management can both have a narrow, and a broader significance. Both parts of its significance are generally included in this thesis. The background of the thesis present a few articles that discuss issues that makes it important for the organization, and the leaders, to work hard with retention management. The research is based on the leaders in the Finnish case company Tradeka. Following key questions are intended to be answered: What are the consequences between leaders actions and employees retention? Which is the leaders role when it comes to retaining employees? Purpose statement: The purpose of the thesis is to investigate and analyze how company leaders today can retain their key employees. How can the provision of key human resources develop a long-term relationship that makes top employees stay in the company? The study aims to establish the procedure leaders apply to retain employees. The purpose is to compare the qualitative study, made at the case company, with findings from the thesis theoretical framework. Research method: The study is a qualitative, as well as a theoretical study where empirical findings and theories has been compared. The intention of investigating and using the Finnish company Tradeka Limited as a case company, is to make the information from the theories more valid, and also the interest in how retention management works in practice. Eleven qualitative interviews were conducted at Tradeka? financial department, both with supervisors and employees to get a broader view at the phenomenon retention management. Result: Leaders and their skill in creating a culture of retention, has becoming a key in why people stay and what usually drives them away from a company. The leader has become the main factor in what

motivates peoples decision to stay or leave. For organizations to keep its key employees their number one priority should be to look at their management, because people leave managers and not companies. Characteristics in a leader that are of importance, as the leader plays a key role in retention management is: trust builder, esteem builder, communicator, talent developer and coach, and talent finder. The leaders relation to the employees plays a central role in retaining employees. Employee Retention Strategies The basic practices which should be kept in mind in the employee retention strategies are: 1. Hire the right people in the first place. 2. Empower the employees: Give the employees the authority to get things done. 3. Make employees realize that they are the most valuable asset of the organization. 4. Have faith in them, trust and respect them 5. Provide them information and knowledge. 6. Keep providing them feedback on their performance. 7. Recognize and appreciate their achievements. 8. Keep their morale high. 9. Create an environment where the employees want to work and have fun. These practices can be categorized in 3 levels: Low, medium and

 high level.

Low Level Employee Retention Strategies:

Appreciating and recognizing a well done job Personalized well done and thank-you cards from supervisors Congratulations e-cards or cards sent to spouses/families Voicemails or messages from top management Periodic days off for good performance Rewards ( gift, certificates, monetary and non monetary rewards) Recognizing professional as well as personal significant events Wedding gifts Anniversary gifts New born baby gifts Scholarships for employees children Get well cards/flowers Birthday cards, celebrations and gifts Providing benefits Home insurance plans Legal insurance Travel insurance Disability programs Providing perks: It includes coupons, discounts, rebates, etc Discounts in cinema halls, museums, restaurants, etc. Retail store discounts Computer peripherals purchase discounts

 Providing workplace conveniences On-site ATM On-site facilities for which cost is paid by employees laundry facility for bachelors Shipping services Assistance with tax calculations and submission of forms Financial planning assistance Casual dress policies Facilities for expectant mothers Parking Parenting guide Lactation rooms Flexi timings Fun at work Celebrate birthdays, anniversaries, retirements, promotions, etc Holiday parties and holiday gift certificates Occasional parties like diwali, holi, dushera, etc Organize get together for watching football, hockey, cricket matches Organize picnics and trips for movies etc Sports outings like cricket match etc Indoor games Occasional stress relievers Casual dress day Green is the color day Handwriting analysis

 Tatoo, mehandi, hair braiding stalls on weekends Mini cricket in office Ice cream Fridays Holi-Day breakfast Employee support in tough time or personal crisis Personal loans for emergencies Childcare and eldercare services Employee Assistance Programs ( Counseling sessions etc) Emergency childcare services Medium Level Strategies for Employee Retention Appreciating and recognizing a well done job Special bonus for successfully completing firm-sponsored certifications Benefit programs for family support Child adoption benefits Flexible benefits Dependents care assistance Medical care reimbursement Providing conveniences at workplace Gymnasiums Athletic membership program Providing training and development and personal growth opportunities Sabbatical programs Professional skills development Individualized career guidance High Level Strategies

 Promoting Work/Life Effectiveness Develop flexible schedules Part-time schedules Extended leaves of absence Develop Support Services On-site day care facility etc.

Understand employee needs: This can be done through proper management style and culture

Listen to the employee and show interest in ideas Appreciate new ideas and reward risk-taking Show support for individual initiative Encourage creativity

Encouraging professional training and development and/or personal growth opportunities: It can be done through:

Mentoring programs Performance feedback programs

Provide necessary tools to the employees to achieve their professional and personal goals

Getting the most out of employee interests and talents Higher study opportunities for employees Vocational counselling Offer personalized career guidance to employees

Provide an environment of trust: Communication is the most important and effective way to develop trust.

 Suggestion committees can be created Open door communication policy can be followed