Presented by:

Arjun Raj
• Process in which the employees are encouraged to
remain with the organization for the maximum period
of time or until the completion of the project.

• Employee retention is beneficial for the organization

as well as the employee.

• A good employer should know how to attract and

retain its employees.
COMPENSATION ENVIRONMENT

SUPPORT

GROWTH

RELATIONSHIP
 Compensation constitutes the largest part of the
employee retention process.
 The employees always have high expectations
regarding their compensation.
 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.
 Growth and development are the integral part
of every individual’s career.

 Factors affecting Growth and Career:

 Training and development
 Work profile
 Personal growth and dreams
 Lack of support from management can sometimes serve as a
reason for employee retention.
 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.
 The 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
 Management is sometimes not able to provide an
employee a supportive work culture and environment
in terms of personal or professional relationships.
 This decreases employee’s interest and he becomes
de-motivated.
 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
 Relationship with the immediate manager
 Relationship with colleagues
 Recruit whole heartedly
 Promote an employee based culture
 Individual development
 Induce loyalty
 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.
 The process of employee retention will benefit an
organization in the following ways:

 The Cost of Turnover

 Loss of Company Knowledge
 Interruption of Customer Service
 Turnover leads to more turnovers
 Goodwill of the company
 Regaining efficiency
It Costs Much More to
Replace Employees Than to
Keep Them
 Job is not what the employee expected to be
 Job and person mismatch
 No growth opportunities
 Lack of appreciation
 Lack of trust and support in coworkers, seniors and
management
 Stress from overwork and work life imbalance
 Compensation:
 New job offer
Key Finding

Money may attract

people to the front
door but something
else is needed to
keep them from
going out the back.
 Identify the cost of employee turnover
 Understand why employees leave
 Implement retention strategy
 An effective retention strategy will seek to ensure:

 Attraction and recruitment strategies enable selection

of the ‘right’ candidate for each role/organization
 New employees’ initial experiences of the
organization are positive
 Appropriate development opportunities are
available to employees, and that they are kept
aware of their likely career path with the
organization
 The organization’s reward strategy reflects the
employee drivers
 The leaving process is managed effectively
 Retaining quality performers contributes to
productivity of the organization and increases
morale among employees.
 Employee retention can be increase by
inculcating the following practices:
 Open Communication
 Employee Reward Program
 Career Development Program
 Performance Based Bonus
 Recreation facilities
 Gifts at Some Occasions
 Creating a Motivating Environment

 Standing up for the Team

 Providing coaching

 Delegation

 Extra Responsibility

 Focus on future career

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 them 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.
 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.
 Provide an environment of trust.
 Regular feedbacks on organization’s goals and activities should be
taken from the employees
 Hire the right people from the beginning
 Appreciating and recognizing a well done job
 Special bonus for successfully completing firm-
sponsored certifications
 Benefit programs for family support
 Flexible benefits
 Dependents care assistance
 Medical care reimbursement
 Providing conveniences at workplace
 Providing training and development and personal
growth opportunities
 Appreciating and recognizing a well done job
 Personalized well done and thank-you cards from
supervisors
 Congratulations e-cards or cards sent to 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
 Scholarships for employee’s children
 Providing benefits
 Providing perks:
It includes coupons, discounts, rebates, etc
 Providing workplace conveniences
 Fun at work
 Occasional stress relievers
 Employee support in tough time or personal
crisis
 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
 Colgate Palmolive India
 Company brand
 Open , transparent, and caring organization
 Training and development programs
 Structured career planning process
 Global career opportunities
THANKU