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EMPLOYEE RETENTION STRATEGY IN
BPO INDUSTRY
A PROJECT REPORT
TABLE OF CONTENTS
Chapter-1 Broad definition of Topic
1.1 Executive Summary...8
1.2 Employee Retention.10
1.3 Employee Retentions Strategies.......12
Chapter-2 Introduction to the Industry..17
Chapter-3 Introduction to the Orani!ation
2.1 About ompany...20
2.2 Analysis ! "rie# Stu$y o# ompany...23
2.3 %allenges #ace$ by &R 'ro#essionals in ompany28
2.( )%y 'eople pre#er to *oin t%e ompany..2+
2., )%y 'eople pre#er to leave t%e ompany30
2.- "'./&R 'ractices31
2.7 Employee "ene#its by ompany..32
Chapter-" #esearch $ethodo%oy
(.1 Stea$#ast '%ilosop%y3-
(.2 0E12s Employee Retention )%eel...37
(.3 enter o# 0E12s Employee Retentions )%eels3+
Chapter-& #eco''endation ( Suestions
,.1 1mportance o# Retaining Employees(2
,.2 3%ree R2s o# Employee Retention(3
,.3 4actors t%at a##ect Employee Retention...(,
,.( )ays to retain Employees(+
,., "est 'ractice Strategies #or 5riving Retention.,3
,.- 0ey 3ren$s6 Strategies at 'ro#ile$ ompanies.,(
,.7 7yt%s about Employee 7orale,-
,.8 Solution #or Employee Retention.-2
1
Chapter-) Benefit*Ad+antae of E'p%oyee #etention
-.1 Employee Recognition increases retention..--
-.2 Retention Strategy %elp $rive revenue gro8t%.-8
Chapter-, Facts ( Findins
7.1 ER Strategy #or re$ucing Employee 3urnover cost.73
7.2 Stu$ies ! Examples on Employee Retention..7(
7.3 .bservations ! 4in$ings on ERS7-
7.( Attrition rates in 1n$ia..8(
7., Stu$y ! Suggestions on ERS...+0
7.- E##ective Retention initiatives..+2
Chapter -- Conc%usion...++
Chapter-. Appendices100
Chapter-1/ Bi0%ioraphy.10,
CHAPTER -1
BROAD DEFINITION
OF TOPIC
2
3
E1EC2TI3E S2$$A#4
3%is pro*ect is a re#lection o# t%e #in$ings o# t%e survey t%at 8as con$ucte$ to
un$erstan$ 8%at "'. ompanies are $oing to8ar$s t%e retention o# t%eir employees.
3%e pro*ect overvie8 encompasses t%e ob*ective9 rationale an$ met%o$ology a$opte$
#or t%e survey. 1t2s a snaps%ot o# 8%y an$ %o8 t%e pro*ect 8as carrie$ out.
3%e brie# pro#ile o# t%e "'. ompanies aims not only to intro$uce t%e companies but
also to impart a better un$erstan$ing o# t%e "'. Sector as a 8%ole. 3%e companies
:ision9 7ission9 :alues an$ "elie#s are mentione$ in a nuts%ell.
3%e intro$uction to retention provi$es t%e t%eoretical base to buil$ t%e pro*ect upon9
an$ also to better un$erstan$ t%e signi#icance o# t%e sub*ect9 %ig%lig%ting t%e nee$ #or
t%e organi;ations to$ay to be more proactive in retaining t%eir employees. 3%e #ocus
%as been on 8%y employees stay so t%at precautionary approac% a$opte$ by $i##erent
organi;ations can be un$erstoo$.
3%e survey %as also broug%t out t%e attempts ma$e by t%e organi;ations to8ar$s
buil$ing up o# 8or< environment #ocusing on employees9 t%eir morale9 motivation9
satis#action an$ ability an$ 8illingness to be %ig%ly pro$uctive. At t%e same time9
several re8ar$ an$ recognition initiatives %ave been $evelope$ to encourage $esire$
employee be%aviour bene#iting t%e organi;ations. 3%e money #actor %as also been
consi$ere$ to un$erstan$ t%e organi;ation2s approac% to8ar$s $eveloping t%eir
employee retention strategy aroun$ compensation9 bonus an$ incentives etc.
(
OB5ECTI3E
3%is researc% 8as un$erta<en to un$erstan$ t%e various strategic initiatives a$opte$
by $i##erent companies to8ar$s t%e retention o# t%eir employees= 8it% an ultimate
ob*ective o# analy;ing t%e retention practices t%at are a$opte$ by a "'. ompany.
#ATIONALE
&aving recogni;e$ t%at %uman assets are t%e only true $i##erentiator t%at an
organi;ation %as9 t%e retention o# t%ese valuable resources %ave become an$ area o#
ma*or concern #or every organi;ation. "e it any stage o# business cycle or economic
con$ition= top per#ormers9 strategic employees an$ t%e 8%ole lot o# t%e employees2
cargo 8%o are capable o# ta<ing t%e organi;ation to t%e ambitious %eig%ts9 are al8ays
t%e #ocus o# attention #or t%eir employees.
,
E'p%oyee #etention
Talented men leave. Dead wood doesn't.
'%ilosop%ically9 employee retention is important= in almost all cases9 it is senseless to
allo8 goo$ people to leave your organi;ation. )%en t%ey leave9 t%ey ta<e 8it% t%em
intellectual property9 relations%ips9 investments >in bot% time an$ money?9 an
occasional employee or t8o9 an$ a c%un< o# your #uture. Employee Retention
Strategies %elps organi;ations provi$e e##ective employee communication to improve
commitment an$ en%ance 8or<#orce support #or <ey corporate initiatives.
E##ective employee retention is a systematic e##ort by employers to create an$ #oster
an environment t%at encourages current employees to remain employe$ by %aving
policies an$ practices in place t%at a$$ress t%eir $iverse nee$s. A strong retention
strategy becomes a po8er#ul recruitment tool.
Retention o# <ey employees is critical to t%e long/term %ealt% an$ success o# any
organi;ation. 1t is a <no8n #act t%at retaining your best employees ensures customer
satis#action9 increase$ pro$uct sales9 satis#ie$ colleagues an$ reporting sta##9 e##ective
succession planning an$ $eeply imbe$$e$ organi;ational <no8le$ge an$ learning.
Employee retention matters as organi;ational issues suc% as training time an$
investment= lost <no8le$ge= insecure employees an$ a costly can$i$ate searc% are
involve$. &ence #ailing to retain a <ey employee is a costly proposition #or an
organi;ation. :arious estimates suggest t%at losing a mi$$le manager in most
organi;ations costs up to #ive times o# %is salary.
1ntelligent employers al8ays realise t%e importance o# retaining t%e best talent.
Retaining talent %as never been so important in t%e 1n$ian scenario= %o8ever9 t%ings
%ave c%ange$ in recent years. 1n prominent 1n$ian metros at least9 t%ere is no $eart% o#
opportunities #or t%e best in t%e business9 or even #or t%e secon$ or t%e t%ir$ best.
Retention o# <ey employees an$ treating attrition troubles %as never been so important
to companies.
-
1n an intensely competitive environment9 8%ere &R managers are poac%ing #rom eac%
ot%er9 organisations can eit%er %ol$ on to t%eir employees tig%t or lose t%em to
competition. 4or gone are t%e $ays9 8%en employees 8oul$ stic< to an employer #or
years #or 8ant o# a better c%oice. @o89 opportunities aboun$.
1t is a #act t%at9 retention o# <ey employees is critical to t%e long/term %ealt% an$
success o# any organisation. 3%e per#ormance o# employees is o#ten lin<e$ $irectly to
Auality 8or<9 customer satis#action9 an$ increase$ pro$uct sales an$ even to t%e image
o# a company. )%ereas t%e same is o#ten in$irectly lin<e$ to9 satis#ie$ colleagues an$
reporting sta##9 e##ective succession planning an$ $eeply embe$$e$ organisational
<no8le$ge an$ learning.
Employee retention matters9 as9 organisational issues suc% as training time an$
investment9 costly can$i$ate searc% etc.9 are involve$. &ence9 #ailing to retain a <ey
employee is a costly proposition #or any organisation. :arious estimates suggest t%at
losing a mi$$le manager in most organisations9 translates to a loss o# up to #ive times
%is salary. 3%is mig%t be 8orse #or "'. companies 8%ere #res% talent is intensively
traine$ an$ in$ucte$ an$ t%en #urt%er groome$ to t%e successive stages. 1n t%is
scenario9 t%e loss o# a mi$$le manager can o#ten prove $ear.
Bes 7c<eo8n2s $e#ine$ employee retention as9 CA systematic e##ort by employers to create
an$ #oster an environment t%at encourages current employees to remain employe$ by %aving
policies an$ practices in place t%at a$$resses t%eir $river nee$s.2
As note$ by )einberg >1++7?9 Dan employee survey covering topics suc% as compensation9
bene#its9 sa#ety9 8or< rules9 manager be%avior9 an$ team8or<E can %ave a $ramatic e##ect in
minimi;ing employee attrition. 3%ese types o# surveys provi$e employees an outlet #or
concerns an$ serve as a means #or employers to i$enti#y areas in nee$ o# c%ange be#ore t%ey
become a problem o# greater proportions. &e notes t%at exit intervie8s given to employees
upon resignation can also give companies insig%t into t%e concerns o# 8or<ers.
Even a simple ac<no8le$gement o# an employee2s goo$ 8or< can be Auite a motivator.
lar<e %ig%lig%ts t%at Da pat on t%e bac< or a 8or$ o# praise a#ter t%ey %ave 8or<e$ %ar$ to
$eliver #or t%e company goes a long 8ay to8ar$ buil$ing in$ivi$ual an$ group moraleE. 'aris
>2002? agrees9 stating t%at Dincentives provi$e t%e Cgol$en %an$cu##s2 t%at <eep #rom
getting a8ayE
7
E'p%oyee #etention Strateies
Strategies on %o8 to minimi;e employee attrition9 con#ronte$ 8it% problems o# employee
attrition9 management %as several policy options vi;. c%anging >or improving existing?
policies to8ar$s recruitment9 selection9 in$uction9 training9 *ob $esign an$ 8age payment.
'olicy c%oice9 %o8ever9 must be appropriate to t%e precise $iagnosis o# t%e problem.
Employee attrition attributable to poor selection proce$ures9 #or example9 is unli<ely to
improve 8ere t%e policy mo$i#ication to #ocus exclusively on t%e in$uction process. EAually9
employee attrition attributable to 8age rates 8%ic% pro$uce earnings t%at are not competitive
8it% ot%er #irms in t%e local labour mar<et is unli<ely to $ecrease 8ere t%e policy a$*ustment
merely to en%ance t%e organi;ation2s provision o# on/t%e *ob training opportunities. Fiven t%at
t%ere is increase in an$ in$irect costs o# labour attrition9 t%ere#ore9 management are #reAuently
ex%orte$ to i$enti#y t%e reasons 8%y people leave organi;ation2s so t%at appropriate action is
ta<en by t%e management. Extensive researc% %as s%o8n t%at t%e #ollo8ing categories o#
%uman capital management #actors provi$es a core set o# measures t%at senior management
can use to increase t%e e##ectiveness o# t%eir investment in people an$ improve overall
corporate per#ormance o# business6
Employee engagement6 3%e organi;ation2s capacity to engage9 retain9 an$ optimi;e t%e value
o# its employees %inges on %o8 8ell *obs are $esigne$9 %o8 employeesG time is use$9 an$ t%e
commitment an$ support t%at is s%o8n to employees by t%e management 8oul$ motivate
employees to stay in organi;ations.
Knowledge accessibility6 3%e extent o# t%e organi;ation2s DcollaborativenessE an$ its
capacity #or ma<ing <no8le$ge an$ i$eas 8i$ely available to employees 8oul$ ma<e
employees to stay in t%e organi;ation. S%aring o# in#ormation s%oul$ be ma$e at all levels o#
management.
3%is accessibility o# in#ormation 8oul$ lea$ to strong per#ormance #rom t%e employees an$
creating strong corporate culture 7eag%an et al. >2002?. 3%ere#ore= in#ormation accessibility
8oul$ ma<e employees #eel t%at t%ey are appreciate$ #or t%eir e##ort an$ c%ances o# leaving
t%e organi;ation are minimal.
Workforce optimization: 3%e organi;ation2s success in optimi;ing t%e per#ormance o# t%e
employees by establis%ing essential processes #or getting 8or< $one9 provi$ing goo$ 8or<ing
con$itions9 establis%ing accountability an$ ma<ing goo$ %iring c%oices 8oul$ retain
employees. 3%e importance o# gaining better un$erstan$ing o# t%e #actors relate$ to
8
recruitment9 motivation an$ retention o# employees is #urt%er un$erscore$ by rising personnel
costs an$ %ig% rates o# employee attrition >"a$a8y9 1+88= "asta an$ Ho%nson9 1+8+= Far$en9
1+8+= 'ar$en9 1+81= S%erman9 1+8-?. )it% increase$ competitiveness on globali;ations9
managers in many organi;ations are experiencing greater pressure #rom top management to
improve recruitment9 selection9 training9 an$ retention o# goo$ employees an$ in t%e long run
8oul$ encourage employees to stay in organi;ations.
Job involvement6 5escribes an in$ivi$ual2s ego involvement 8it% 8or< an$ in$icates t%e
extent to 8%ic% an in$ivi$ual i$enti#ies psyc%ologically 8it% %isI%er *ob >0anungo9 1+82?.
1nvolvement in terms o# internali;ing values about t%e goo$ness or t%e importance o# 8or<
ma$e employees not to Auit t%eir *obs an$ t%ese involvements are relate$ to tas<
c%aracteristics. )or<ers 8%o %ave a greater variety o# tas<s ten$ stay in t%e *ob. 3as<
c%aracteristics %ave been #oun$ to be potential $eterminants o# attrition among employees
>ouger9 1+88= ouger an$ 0a8asa<i9 1+80= Far$en9 1+8+= Fol$stein an$ Roc<art9 1+8(?.
3%ese inclu$e t%e #ive core *ob c%aracteristics i$enti#ie$ by &ac<man an$ .l$%am >1+7,9
1+80?6 s<ill variety9 8%ic% re#ers to t%e opportunity to utili;e a variety o# value$ s<ills an$
talents on t%e *ob= tas< i$entity9 or t%e extent to 8%ic% a *ob reAuires completion o# a 8%ole
an$ i$enti#iable piece o# 8or< / t%at is9 $oing a *ob #rom beginning to en$9 8it% visible results=
tas< signi#icance9 8%ic% re#lects t%e extent to 8%ic% t%e *ob %as a substantial impact on t%e
lives or 8or< o# ot%er people9 8%et%er 8it%in or outsi$e t%e organi;ation= *ob autonomy9 or
t%e extent to 8%ic% t%e *ob provi$es #ree$om9 in$epen$ence9 an$ $iscretion in sc%e$uling
8or< an$ $etermining proce$ures t%at t%e *ob provi$es= an$ *ob #ee$bac<9 8%ic% re#ers to t%e
extent to 8%ic% t%e *ob provi$es in#ormation about t%e e##ectiveness o# one2s per#ormance
>3or et al.9 1++7?. 1nvolvement 8oul$ in#luence *ob satis#action an$ increase organi;ational
commitment o# t%e employees. Employees 8%o are more involve$ in t%eir *obs are more
satis#ie$ 8it% t%eir *obs an$ more committe$ to t%eir organi;ation >"lau an$ "oal9 1+8+=
"roo<e an$ 'rice9 1+8+= "roo<e et al.9 1+88= 0anungo9 1+82?. Hob involvement %as also been
#oun$ to be negatively relate$ to attrition intentions >"lat an$ "oal9 1+8+?. Hob satis#action9
career satis#action9 an$ organi;ational commitment re#lect a positive attitu$e to8ar$s t%e
organi;ation9 t%us %aving a $irect in#luence on employee attrition intentions. Hob satis#action9
*ob involvement an$ organi;ational commitment are consi$ere$ to be relate$ but
$istinguis%able attitu$es >"roo<e an$ 'rice9 1+8+?. Satis#action represents an e##ective
response to speci#ic aspects o# t%e *ob or career an$ $enotes t%e pleasurable or positive
emotional state resulting #rom an appraisal o# one2s *ob or career >Boc<e9 1+7-= 'orter et al.9
1+7(= )illiams an$ &a;er9 1+8-?.
+
rganizational commitment: 1s an e##ective response to t%e 8%ole organi;ation an$ t%e
$egree o# attac%ment or loyalty employees #eel to8ar$s t%e organi;ation. Hob involvement
represents t%e extent to 8%ic% employees are absorbe$ in or preoccupie$ 8it% t%eir *obs an$
t%e extent to 8%ic% an in$ivi$ual i$enti#ies 8it% %isI%er *ob >"roo<e et al.9 1+88?.3%e $egree
o# commitment an$ loyalty can be ac%ieve$ i# management t%ey enric% t%e *obs9 empo8er an$
compensate employees properly.
Empowerment of employees: oul$ %elp to en%ance t%e continuity o# employees in
organi;ations. Empo8ere$ employees 8%ere managers supervise more people t%an in a
tra$itional %ierarc%y an$ $elegate more $ecisions to t%eir subor$inates >7alone9 1++7?.
7anagers act li<e coac%es an$ %elp employees solve problems. Employees9 %e conclu$es9
%ave increase$ responsibility. Superiors empo8ering subor$inates by $elegating
responsibilities to t%em lea$s to subor$inates 8%o are more satis#ie$ 8it% t%eir lea$ers an$
consi$er t%em to be #air an$ in turn to per#orm up to t%e superior2s expectations >0eller an$
5ansereau9 1++,?. All t%ese ma<es employees to be committe$ to t%e organi;ation an$
c%ances o# Auitting are minimal.
3%ere#ore9 i# t%e above strategies are ta<en into account t%e business 8oul$ be able to survive
in a $ynamic environment by treating t%eir employees as one o# t%eir assets 8%ic% nee$s a lot
o# attention. Employees are t%e bac<bone o# any business success an$ t%ere#ore9 t%ey nee$ to
be motivate$ an$ maintaine$ in organi;ation at all cost to ai$ t%e organi;ation to be globally
competitive in terms o# provi$ing Auality pro$ucts an$ services to t%e society. An$ in t%e
long/run t%e returns on investments on t%e employees 8oul$ be ac%ieve$. 7anagement
s%oul$ encourage *ob re$esign/tas< autonomy9 tas< signi#icance an$ tas< i$entity9 open boo<
management9 empo8erment o# employees9 recruitment an$ selection must be $one
scienti#ically 8it% t%e ob*ective o# retaining employees.
7anagers s%oul$ examine t%e sources o# employee attrition an$ recommen$ t%e best
approac% to #ill t%e gap o# t%e source9 so t%at t%ey can be in a position to retain employees in
t%eir organi;ation to en%ance t%eir competitiveness in t%e t%is 8orl$ o# globali;ation.
7anagers must un$erstan$ t%at employees in t%eir organi;ations must be treate$ as t%e most
liAui$ assets o# t%e organi;ation 8%ic% 8oul$ ma<e t%e organi;ation to 8it%stan$ t%e 8aves o#
globali;ation. 3%is asset nee$s to be monitore$ 8it% $ue care9 ot%er8ise t%eir organi;ations
8oul$ cease to exist. Employees s%oul$ be given c%allenging 8or< an$ all managers s%oul$
be %ire$ on t%e basis o# <no8%o8 by #ollo8ing lai$ $o8n proce$ures o# t%e organi;ation an$
t%is 8oul$ ma<e organi;ation to %ave competent managers at all levels o# management an$
%ence goo$ supervision. Fri##et% et al. >2000? note$ pay an$ pay/relate$ variables %ave a
10
great e##ect on employee attrition. 7anagement must compensate employees a$eAuately.
3%ey s%oul$ pay employees base$ on t%eir per#ormance an$ in a$$ition t%ey s%oul$ given
employees incentives li<e in$ivi$ual bonus9 lump sum bonus9 s%aring o# pro#its an$ ot%er
bene#its. &ence9 i# t%ese are put in place t%ey 8oul$ minimi;e employee attrition.
Employee Retention Strategies %elps organi;ations provi$e e##ective e'p%oyee
communication to improve commitment an$ en%ance 8or<#orce support #or <ey
corporate initiatives.
11
CHAPTER 2
INTRODUCTION TO
THE INDUSTRY
12
B7O SECTO# IN82ST#4
Business process outsourcin
Business process outsourcin 9B7O: is a 0road ter' referrin to outsourcin in
a%% fie%ds; A B7O differentiates itse%f 0y either puttin in ne< techno%oy or
app%yin e=istin techno%oy in a ne< <ay to i'pro+e a process;
"usiness 'rocess .utsourcing >"'.? is t%e $elegation o# one or more 13/intensive
business processes to an external provi$er t%at in turn o8ns9 a$ministers an$ manages
t%e selecte$ process base$ on $e#ine$ an$ measurable per#ormance criteria. "usiness
'rocess .utsourcing >"'.? is one o# t%e #astest gro8ing segments o# t%e 1n#ormation
3ec%nology Enable$ Services >13ES? in$ustry.
4e8 o# t%e motivation #actors as to 8%y "'. is gaining groun$ are6
4actor ost A$vantage
Economy o# Scale
"usiness Ris< 7itigation
Superior ompetency
Jtili;ation 1mprovement
Fenerally outsourcing can be $e#ine$ as / !n organization entering into a contract
wit" anot"er organization to operate and manage one or more of its b#siness
processes.
)%en t%ere are so many bene#its associate$ 8it% "'. in$ustry. 8%en t%ere are so
many privileges #or t%e "'. employees t%an 8%at ma<es t%em to c%ange t%e
companyIin$ustryKK 1s it only 7.@EL t%at matters or anyt%ing else as 8ellKK A#ter
ta<ing exit/intervie8s an$ analy;ing t%e tren$ 1 am able to list out #ollo8ing reasons
#or a "'. pro#essional to c%ange %isI%er *ob.
@o gro8t% opportunityIlac< o# promotion
4or %ig%er Salary
4or &ig%er e$ucation
13
7isgui$ance by t%e company
'olicies an$ proce$ures are not con$ucive
@o personal li#e
'%ysical strains
Jneasy relations%ip 8it% peers or managers
1n an in$ustry li<e "'.9 t%e 8or< can o#ten be monotonous an$ opportunities #or
career gro8t% minimal. So 8%en opportunities bec<on9 t%e %ig% rate o# attrition is not
surprising. &o8ever9 t%ere are some common reasons t%at especially cause people to
leave. Surveys %ave liste$ nig%t s%i#ts9 money9 inability to %an$le various types o#
stress9 monotonous 8or<= company policies9 lac< o# career gro8t%9 problems 8it%
t%ose in senior positions etc.9 as some o# t%e most common reasons liste$ by "'.
employees9 as reasons #or Auitting *obs.
A83ANTA>ES OF B7O
An important aspect o# business process outsourcing is its ability to #ree corporate
executives #rom some o# t%eir $ay/to/$ay process management responsibilities. .nce
a process is success#ully outsource$9 t%ey get more time to9 explore ne8 revenue
streams9 accelerate ot%er pro*ects9 an$ #ocus on t%eir customers.
"y outsourcing t%eir bac< o##ice operations to t%ir$ 8orl$ countries9 companies %ave
t%e #ollo8ing a$vantages6
Ac%ieve cost re$uctions M t%is is ma$e possible t%roug% process
improvements9 reengineering9 an$ use o# tec%nologies t%at re$uce an$ bring
a$ministrative an$ ot%er costs un$er control.
0ey in on companyGs main business M 8it% t%e $ay/to/$ay bac< o##ice
operations ta<en care o#9 t%e management is #ree to impart more time to
buil$ing t%e companyGs core businesses
.btain outsi$e expertise M Rat%er t%an recruiting an$ training personnel9 "'.
ensures t%at $omain experts #rom anot%er company provi$e t%e nee$e$
gui$ance an$ s<ills.
7eet constantly c%anging customer $eman$s M many "'. ven$ors provi$e
t%e management 8it% #lexible an$ scalable services to meet t%e customers2
c%anging reAuirements9 an$ to support company acAuisitions9 consoli$ations9
an$ *oint ventures
1(
Ac%ieving revenue increases M by outsourcing non/core processes9 companies can
#ocus on increasing t%eir sales an$ mar<et s%are9 $evelop ne8 pro$ucts9 expan$ into
ne8 mar<ets9 an$ en%ance customer service an$ satis#actions.
1,
CHAPTER 3
INTRODUCTION TO
THE ORGANIZATION
1-
A0out the co'pany6
)ipro 8as establis%e$ in 1+(, as a vegetable oil manu#acturer in Amalner9
7a%aras%tra. 3%e company at t%at time 8as <no8n as )estern 1n$ia 'ro$ucts
Bimite$. 1ts main area o# business 8as t%e pro$uction o# Sun#lo8er :anaspati .il9 an$
later on9 soaps an$ ot%er consumer care pro$ucts. Starting o## 8it% consumer pro$ucts
business9 )ipro t%en $iversi#ie$ into ne8er areas inclu$ing 13 %ar$8are an$ 13
services. Suc% %as been t%e $ynamic po8er o# t%e organi;ation t%at over t%e past ,0
years9 )ipro %as evolve$ into a lea$ing global 13 company9 a company 8%ic% %as
pioneere$ many an innovation in t%e 13 services9 "'. an$ R!5 services space.
)ipro Bimite$ is to$ay a N7 billion revenue 139 "'. an$ R!5 Services organi;ation
8it% presence in over ,0 countries.
)ipro "'. is uniAuely positione$ to service customer reAuirements by leveraging its
tenets o# Auality an$ innovation9 t%e best people talent9 sel# sustaining process
#rame8or< an$ $omain <no8le$ge. )e o##er customi;e$ service o##erings= translating
into t%e most #lexible an$ cost e##ective services o# t%e %ig%est Auality #or our
customers.
1n 20029 )ipro too< a Auantum *ump in t%e "'. services by acAuiring t%e t%en
Spectra min$. )ipro "'. Solutions complements t%e services o##ere$ by )ipro
3ec%nologies9 ma<ing it one o# t%e largest "'. service players.
)it% over 1+9000 people9 operating out o# + $i##erent locations >1n$ia an$ Eastern
Europe?9 )ipro "'. %as been a critical partner to all its customers in ac%ieving t%eir
business goals. )ipro "'. services customers in various in$ustries inclu$ing
"an<ing ! apital 7ar<ets9 1nsurance9 3ravel ! &ospitality9 &i/3ec% 7anu#acturing9
3elecom ! &ealt%care sectors. )ipro "'. also %as $eep expertise in $elivering
process speci#ic solutions in areas li<e 4inance ! Accounting9 'rocurement9 &R
Services9 Boyalty Services an$ 0no8le$ge Services.
17
)ipro "'. Solutions Bt$ is 1n$ia2s lea$ing t%ir$ party o##s%ore "'. >"usiness
'rocess .utsourcing? provi$er 8it% a #ull spectrum o# "'. services. 3%e ompany
&ea$Auarters are locate$ in @e8 5el%i9 8it% six state/o#/t%e/art #acilities in 7umbai9
'une9 %ennai ! 0ol<ata an$ global o##ices in JS9 J0 an$ ana$a. )ipro "'.
provi$es a broa$ range o# services #rom customer relations%ip management9 bac<
o##ice transaction processing to in$ustry speci#ic solutions. 3%e <ey element o#
services $elivery is an integrate$ approac% to8ar$s provi$ing increasing value over
t%e entire course o# our client relations%ips. 3%is involves a p%ase$ approac% to8ar$s
process stan$ar$i;ation9 process optimi;ation an$ process re/engineering.
8e%i+erin strateic6
B7O ser+ices and so%utions that 'atch the hih sta?es
3%e "usiness 'rocess .utsourcing >"'.? in$ustry %as evolve$ #rom its earlier p%ases
to no8 become a strategic partner 8%o can explore innovative an$ %ig%/value
solutions #or customers 8%ile also %an$ling existing processes. ustomers expect
"'. ven$ors to #ocus on streamlining not *ust t%e perip%ery but core business
#unctions 8%ic% can optimi;e business per#ormance an$ create competitive
$i##erentiation in t%e mar<et place.
@hy @iproA
.t%er #actors $riving t%e a$option o# "usiness process outsourcing >"'.? by
customers inclu$e improving service levels9 cost re$uction9 %elp in integration
t%roug% process management an$ gaining access to best/in/class processes 8it%out
o8ning or acAuiring tec%nology an$ s<ills.
)ipro "'. is a lea$ing provi$er o# business process outsourcing services #ocusing on
multiple %ori;ontals an$ verticals. .ur integrate$ solution approac% provi$es prime
value to customers t%roug% process stan$ar$i;ation9 process simpli#ication an$
process optimi;ation. )e can leverage our range o# enterprise o##erings to enable
$iverse $omains meet existing tec%nology an$ #unctional reAuirements even as 8e
partner 8it% customers to go to t%e next level o# operational excellence.
18
)it% a 8ell/entrenc%e$ global $elivery mo$el9 our "'. services are provi$e$ #rom
@ort% America9 entral an$ Eastern Europe9 1n$ia9 %ina an$ Batin America
@I7#O $ANA>E$ENT TEA$
$r; A!i' B; 7re'Ci D Chair'an
$r; T;E; Eurien D CEOF IT Business ( E=ecuti+e 8irector
Tea' Leaders 9B7O Sector:6
7r. 7anis% 5ugar M &ea$9 )ipro9 "'.
7r. 3anvir Ali 0%an M :' "usiness Strategy ! @e8 1nitiative9 )ipro9 "'.
7r. 0eyur 7aniar M :ice 'resi$ent9 )ipro "'.
7r. @it%ya Ram<umar9 "usiness 3ec%nology .##icer9 )ipro9 "'.
7r. "%araten$u Sure<a9 Associate :'9 )ipro9 "'.
B7O Industry E=pertise6
"an<ing an$ 4inancial Services "'.
3ransportation "'.
1nsurance "'.
'%armaceutical "'.
Retail "'.
1+
ANAL4SIS AN8 B#IEF ST284 OF TBE
CO$7AN4
8ifferent Types of Ser+ices Bein Offered By @I7#O 9B7O:
1. Custo'er Support Ser+ices
.ur customer service o##erings create a virtual customer service center to
manage customer concerns an$ Aueries t%roug% multiple c%annels inclu$ing
voice9 e/mail an$ c%at on a 2(I7 an$ 3-, $ays basis.
Service Example6 ustomers calling to c%ec< on t%eir or$er status9 customers
calling to c%ec< #or in#ormation on pro$ucts an$ services9 customers calling to
veri#y t%eir account status9 customers calling to c%ec< t%eir reservation status
etc.
2; Technica% Support Ser+ices
.ur tec%nical support o##erings inclu$e roun$/t%e/cloc< tec%nical support an$
problem resolution #or .E7 customers an$ computer %ar$8are9 so#t8are9
perip%erals an$ 1nternet in#rastructure manu#acturing companies. 3%ese
inclu$e installation an$ pro$uct support9 up ! running support9
troubles%ooting an$ Jsage support.
Service Example6 ustomers calling to resolve a problem 8it% t%eir %ome '9
customers calling to un$erstan$ %o8 to $ial up to t%eir 1S'9 customers calling
8it% a problem 8it% t%eir so#t8are or %ar$8are.
3. Te%e'ar?etin Ser+ices
.ur telesales an$ telemar<eting outsourcing services target interaction 8it%
potential customers #or GprospectingG li<e eit%er #or generating interest in
pro$ucts an$ services9 or to up/sell I promote an$ cross sell to an existing
customer base or to complete t%e sales process online.
20
Service Example6 .utboun$ calling to sell 8ireless services #or a telecom
provi$er9 outboun$ calling to retail %ouse%ol$s to sell leisure %oli$ays9
outboun$ calling to existing customers to sell a ne8 rate car$ #or a mobile
service provi$er or outboun$ calling to sell cre$it or $ebit car$s etc.
(. E'p%oyee IT Be%p-des? Ser+ices
.ur employee 13 %elp/$es< services provi$e tec%nical problem resolution an$
support #or corporate employees.
Service Example6 o# t%is service inclu$e level 1 an$ 2 multi/c%annel support
across a 8i$e range o# s%rin< 8rappe$ an$ B." applications9 system problem
resolutions relate$ to $es<top9 noteboo<s9 .S9 connectivity etc.9 o##ice
pro$uctivity tools support inclu$ing bro8sers an$ mail9 ne8 service reAuests9
13 operational issues9 pro$uct usage Aueries9 routing speci#ic reAuests to
$esignate$ contacts an$ remote $iagnostics etc.
,. Insurance 7rocessin
.ur insurance processing services provi$e speciali;e$ solutions to t%e
insurance sector an$ support critical business processes applicable to t%e
in$ustry rig%t #rom ne8 business acAuisition to policy maintenance to claims
processing.
Service Example6
Ne< Business * 7ro'otion6
1nboun$Ioutboun$ sales9 1nitial Setup9 ase 7anagement9 Jn$er8riting9 Ris<
assessment9 'olicy issuance etc.
7o%icy $aintenance * $anae'ent6
Recor$ %anges li<e @ame9 "ene#iciary9 @ominee9 A$$ress= ollateral
veri#ication9 Surren$er Au$its Accounts Receivable9 Accounting9 laim
.verpayment9 ustomer care service via voiceIemail etc.
21
); 8ata Entry Ser+ices * 8ata 7rocessin Ser+ices
Service Example6
o 5ata entry #rom 'aperI"oo<s 8it% %ig%est accuracy an$ #ast turnaroun$
time >3A3?
o 5ata entry #rom 1mage #ile in any #ormat
o "usiness 3ransaction 5ata entry li<e sales I purc%ase I payroll.
o 5ata entry o# E/"oo<s I Electronic "oo<s
o 5ata Entry 6 Lello8 'ages I )%ite 'ages 0eying
o 5ata Entry an$ compilation #rom )eb site
o 5ata apture I ollection
o "usiness ar$ 5ata Entry into any 4ormat
o 5ata Entry #rom %ar$copyI'rinte$ 7aterial into text or reAuire$ #ormat
o 5ata Entry into So#t8are 'rogram an$ application
o Receipt an$ "ill 5ata Entry
o atalog 5ata Entry.
o 5ata Entry #or 7ailing BistI7ailing Babel.
o 7anuscripting typing in to 8or$
o 3ape$ 3ranscription in to 8or$.
o opy9 'aste9 E$iting9 Sorting9 1n$exing 5ata into reAuire$ #ormat etc.
,; 8ata Con+ersion Ser+ices
Service Example6
o onversion o# $ata across various $atabases on $i##erent plat#orms
o 5ata onversion via 1nput I .utput #or various me$ia.
o 5ata onversion #or $atabases9 8or$ processors9 sprea$s%eets9 an$ many
ot%er stan$ar$ an$ custom/ma$e so#t8are pac<ages as per reAuirement.
o onversion #rom 'age ma<er to '54 #ormat.
o onversion #rom 7s/)or$ to &37B #ormat
o onversion #rom 3ext to )or$ 'er#ect.
o onversion #rom 3ext to )or$ to &37B an$ Acrobat
22
o onvert Ra8 5ata into reAuire$ 7S .##ice #ormats.
o 3ext to '54 an$ '54 to )or$ I 3ext I 5oc
o 5ata ompilation in '54 #rom Several Sources.
o E/"oo< onversion etc.
8. ScanninF OC# <ith Editin ( Inde=in Ser+ices
Service Example6
o &ig% spee$ 1mage/Scanning an$ 5ata capture services
o &ig% spee$ large volume scanning
o .R 5ata 4rom Scanne$ page I image
o Scan ! .R paper "oo< in to 5.
o A5."E '54 onversion Services.
o onversion #rom paper or e/#ile to various #ormats
+. Boo? Eeepin and Accountin Ser+ices
Service Example6
o Feneral Be$ger
o Accounts Receivables an$ Accounts 'ayable
o 4inancial Statements
o "an< Reconciliation
o Assets I EAuipment Be$gers etc.
1/; For' 7rocessin Ser+ices6
Service Example6
o 1nsurance claim #orm
o 7e$ical 4orm I 7e$ical billing
o .nline 4orm 'rocessing
o 'ayrol 'rocessing etc.
23
11; Internet * On%ine * @e0 #esearch
Service Example6
o 1nternet Searc%9 'ro$uct Researc%9 7ar<et Researc%9 Survey9 Analysis.
o )eb an$ 7ailing list researc% etc.
2(
Cha%%enes for a B# 7rofessiona% in B7O
1. "ran$ eAuity6 'eople still consi$er "'. to be Olo8 bro8O9 t%us ma<ing it
$i##icult to attract t%e best talent.
2. Stan$ar$ pre/*ob training6 Again9 $ue to t%e 8i$e variety o# t%e *obs9 lac<
o# general clarity on s<ill sets9 etc9 t%ere is no stan$ar$ curriculum9 8%ic%
coul$ be $esigne$ an$ #ollo8e$.
3. "enc%mar<s6 3%ere are %ar$ly any benc%mar<s #or compensation an$
bene#its9 per#ormance or &R policies. Everyone is c%arting t%eir o8n
course.
(. ustomer/companies ten$ to $eman$ better results #rom outsourcing
partners t%an 8%at t%ey coul$ actually expect #rom t%eir o8n $epartments.
O)%en t%e *ob is being $one 109000 miles a8ay9 $eman$s on parameters
suc% as Auality9 turn aroun$ timeliness9 in#ormation security9 business
continuity an$ $isaster recovery9 etc9 are #ar %ig%er t%an at %ome. So9 %o8
to be more e##icient t%an t%e originalK
,. Bac< o# #ocuse$ training an$ certi#ications given t%is bac<groun$9 t%e
recruiting an$ compensation c%allenges o# &R $epartments are only
un$erstan$able.
2,
@hy peop%e prefer to Coin @I7#O
1n general a person 8it% any gra$uation can *oin any o# t%e "'.. Some "'.Gs li<e to
ta<e people 8it% 7"A but t%en again t%e speciali;ation are o# an in$ivi$ual %ar$ly
ma<es any $i##erence. Again9 t%is is t%e in$ustry= 8%ere t%ere is no re#erence c%ec<s
an$ very o#ten people $onGt even speci#y t%ere exact age. Bets me s%are 8it% you
some o# t%e reasons as 8%y people pre#er to *oin a company6
G @ot get a better *ob.
P 4in$ not%ing better to $o.
P E$ucation level $oesnGt matter.
P Foo$ 8or< environment.
P Foo$ "ene#its.
P 4lexibility o# time.
P Attractive li#e style.
P 3ransport #acility.
2-
@hy peop%e %ea+e the @I7#O
)%en t%ere are so many bene#its associate$ 8it% "'. in$ustry.8%en t%ere are so
many privileges #or t%e "'. employees t%an 8%at ma<es t%em to c%ange t%e
companyIin$ustryKK 1s it only 7.@EL t%at matters or anyt%ing else as 8ellKK &ere
are some o# t%e reasons #or a "'. pro#essional to c%ange %isI%er *ob.
1. @o gro8t% opportunityIlac< o# promotion
2. 4or %ig%er Salary
3. 4or &ig%er e$ucation

(. 7isgui$ance by t%e company
,. 'olicies an$ proce$ures are not con$ucive
-. @o personal li#e
7. '%ysical strains
8. Jneasy relations%ip 8it% peers or managers

27
@I7#O B7O FO# B# 7#ACTICES
)ipro Spectra min$ %as been a8ar$e$ t%e @&R5@ >@ational &R5 @et8or<?
3railbla;ers A8ar$ 200(9 $uring t%e 1nternational @&R5 on#erence 200(9 %oste$ in
"angalore. 3%e a8ar$ 8as con#erre$ in t%e category o# aca$emic institutions9
corporations an$ voluntary organi;ations t%at %ave create$ ne8 pat%s an$ $irections
#or ot%ers to emulate.
Accor$ing to a press release9 @&R5@ %as speci#ically recogni;e$ )ipro Spectra
min$ #or its per#ormance orientation t%at %as become central to t%e company culture.
3%e per#ormance management system at t%e company is aligne$ to bot%9 t%e business
goals an$ values a$%erence.
3%e company valuesI operating principles are bro<en $o8n into be%avioral in$icators
t%at are observe$ an$ measure$ on a regular basis9 8%ic% in turn lin<e$ to t%e personal
e##ectiveness parameters in an in$ivi$ualGs per#ormance revie8. 3%ere is also an
ongoing emp%asis on training nee$s assessment an$ people $evelopment.
)ipro Spectra min$ 8as also note$ #or its innovative practices in t%e areas o#
attracting t%e rig%t talent9 re8ar$ an$ recognition9 promoting #un as a 8ritten $o8n
operating principle9 learning9 employee communication an$ compensation 8%ic% are
amongst t%e <ey reasons #or t%e spectacular success o# t%e company.
28
E$7LO4EE BENEFITS 7#O3I8E8
B4 TBE CO$7AN4
A part #rom t%e legal an$ man$atory bene#its suc% as provi$ent/#un$ an$ gratuity9
belo8 is a list o# ot%er bene#its6
1. >roup $edi-c%ai' Insurance Sche'e6 3%is insurance sc%eme is to provi$e
a$eAuate insurance coverage o# employees #or expenses relate$ to
%ospitali;ation $ue to illness9 $isease or in*ury or pregnancy in case o# #emale
employees or spouse o# male employees. All employees an$ t%eir $epen$ent
#amily members are eligible. 5epen$ent #amily members inclu$e spouse9 non/
earning parents an$ c%il$ren above t%ree mont%s
2. 7ersona% Accident Insurance Sche'e6 3%is sc%eme is to provi$e a$eAuate
insurance coverage #or &ospitali;ation expenses arising out o# in*uries
sustaine$ in an acci$ent. 3%is covers total I partial $isablement I $eat% $ue to
acci$ent an$ $ue to acci$ents.
3. Su0sidi!ed Food and Transportation6 3%e organi;ations provi$e
transportation #acility to all t%e employees #rom %ome till o##ice at subsi$i;e$
rates. 3%e lunc% provi$e$ is also subsi$i;e$.
(. Co'pany Leased Acco''odation6 Some o# t%e companies provi$es s%are$
accommo$ation #or all t%e out station employees9 in #act some o# t%e "'.
companies also un$erta<es to pay electricityI8ater bills as 8ell as t%e Society
c%arges #or t%e s%are$ accommo$ation. 3%e purpose is to provi$e to t%e
employees to lea$ a more com#ortable 8or< li#e balance.
,. #ecreationF CafeteriaF AT$ and Conciere faci%ities6 3%e recreation
#acilities inclu$e pool tables9 c%ess tables an$ co##ee bars. ompanies also
%ave 8ell eAuippe$ gyms9 personal trainers an$ s%o8ers at #acilities.
-. Corporate Credit Card6 3%e main purpose o# t%e corporate cre$it car$ is
enable t%e timely an$ e##icient payment o# o##icial expenses 8%ic% t%e
employees un$erta<e #or purposes suc% as travel relate$ expenses li<e &otel
bills9 Air tic<ets etc
2+
7. Ce%%u%ar 7hone * Laptop6 ellular p%one an$ I or Baptop are provi$e$ to t%e
employees on t%e basis o# business nee$. 3%e employee is responsible #or t%e
maintenance an$ sa#eguar$ing o# t%e asset.
8. 7ersona% Bea%th Care 9#eu%ar 'edica% chec?-ups:6 Some o# t%e "'.GS
provi$es t%e #acility #or extensive %ealt% c%ec</up. 4or employees 8it% above
(0 years o# age9 t%e me$ical c%ec</up can be $one once a year.
+. Loans6 7any "'. companies provi$e loan #acility on t%ree $i##erent
occasions6 Employees are provi$e$ 8it% #inancial assistance in case o# a
me$ical emergency. Employees are also provi$e$ 8it% #inancial assistance at
t%e time o# t%eir 8e$$ing. An$9 t%e ne8 recruits are provi$e$ 8it% interest #ree
loans to assist t%em in t%eir initial settlement at t%e 8or< location.
10. Educationa% Benefits6 7any "'. companies %ave t%is policy to $evelop t%e
personality an$ <no8le$ge level o# t%eir employees an$ %ence reimburses t%e
expenses incurre$ to8ar$s tuition #ees9 examination #ees9 an$ purc%ase o#
boo<s sub*ect9 #or pursuing 7"A9 an$Ior ot%er management Auali#ication at
1n$iaGs top most "usiness Sc%ools.
11. 7erfor'ance 0ased incenti+es6 1n many "'. companies t%ey %ave plans #or9
per#ormance base$ incentive sc%eme. 3%e parameters #or calculation are
process per#ormance i.e. spee$9 accuracy an$ pro$uctivity o# eac% process.
3%e 'ay #or 'er#ormance can be as muc% as 22Q o# t%e salary.
12. F%e=i-ti'e6 3%e main ob*ective o# t%e #lextime policy is to provi$e
opportunity to employees to 8or< 8it% #lexible 8or< sc%e$ules an$ set out
con$itions #or availing t%is provision. 4lexible 8or< sc%e$ules are initiate$ by
employees an$ approve$ by management to meet business commitments 8%ile
supporting employee personal li#e nee$s .3%e #actors on 8%ic% 4lexi time is
allo8e$ to an employee inclu$e6 %il$ or 'arent care9 &ealt% situation9
7aternity9 4ormal e$ucation program
13. F%e=i0%e Sa%ary Benefits6 1ts main ob*ective is to provi$e #lexibility to t%e
employees to plan a tax/e##ective compensation structure by balancing t%e
mont%ly net income9 yearly bene#its an$ income tax payable. 1t is applicable o#
all t%e employees o# t%e organi;ation. 3%e Salary consists o# "asic9 5A an$
onveyance Allo8ance. 3%e 4lexible "ene#it 'lan consists o#6 &ouse Rent
Allo8ance9 Beave 3ravel Assistance9 7e$ical Reimbursement9 Special
Allo8ance
30
1(. #eu%ar >et toether and other cu%tura% prora's6 3%e companies
organi;es cultural program as an$ 8%en possible but most o# t%e times9 once in
a Auarter9 in 8%ic% all t%e employees are given an opportunity to $isplay t%eir
talents in $ramatics9 singing9 acting9 $ancing etc. Apart #rom t%at t%e
organi;ations also con$uct various sports programs suc% as ric<et9 #ootball9
etc an$ regularly play matc%es 8it% t%e teams o# ot%er organi;ations an$
colleges.
1,. @eddin 8ay >ift6 Employee is given a gi#t vouc%er o# Rs. 2000I/ to Rs.
7000I/ base$ on t%eir level in t%e organi;ation.
1-. E'p%oyee #eferra% Sche'e6 1n several companies employee re#erral sc%eme
is implemente$ to encourage employees to re#er #rien$s an$ relatives #or
employment in t%e organi;ation.
1,; E'p%oyee Stoc? Option 7%an6
31
CHAPTER 4
RESEARCH &
METHODOLOGY
A steadfast phi%osophy that sets E'p%oyee
#etention Strateies apart6
P Jses only researc%/base$9 t%eory/supporte$ approac%es to improving employee
engagement. Avoi$e$ are gimmic<s suc% as employee o# t%e mont%9 suggestion boxes9
pri;es or ot%er Dcarrots.E )%ile commonly use$9 t%ese s%ort/term #ixes #ail to pro$uce
genuine employee loyalty >more t%an -0 years2 o# researc% tells us soR?.
32
P Employs an easy/to/un$erstan$ systems approac% to ensure t%e root causes o#
turnover are a$$resse$ an$ t%e potential #or lasting c%ange unleas%e$.
P ustomi;es all activities to your organi;ation2s uniAue %istory9 current practices an$
strategic ob*ectives. Also consi$ere$ are c%allenges uniAue to your in$ustry sector9
competitive mar<etplace issues an$ talent s%ortages.
P 1nvolves t%ose responsible #or implementing c%ange in actually creating t%e c%ange9
ensuring input an$ improve$ s%are$ un$erstan$ing an$ support o# all initiatives.
P 1ntegrates %an$s/on9 action/oriente$ approac%es t%at enable organi;ations to move
#or8ar$ Auic<ly an$ e##ectively
P Recogni;es t%e researc%/proven role o# no/cost strategies in $eveloping t%e DglueE
t%at buil$s employee loyalty an$ commitment.
P "rings to your organi;ation lea$ing/e$ge organi;ation/$evelopment best practices
to e##ectively an$ Auic<ly buil$ a retention/ric% culture.
EEiHs E$7LO4EE #ETENTION @BEEL
3%e #irst step to improving your employee retention is to un$erstan$ 8%y employees
stay 8it% t%eir current employer. 7any OexpertsO $8ell on t%e reasons employees
leave9 8%ic% is not as important or revealing as t%e reasons t%ey stay. ompanies %ave
trie$ many $i##erent programs an$ per<s to %ol$ onto goo$ employees. &o8ever9
stu$ies s%o8 t%at t%ese e##orts are not enoug% to retain goo$ employees 8%en t%e
support t%at is nee$e$ to ac%ieve *ob success is not a$eAuate.
33
8onIt @aste 4our $oney on Thins That 8onIt $a?e a 8ifference;;;
Among t%e countless in$ucements o##ere$9 only t%ose i$enti#ie$ in t%e center o# EEiIs
E'p%oyee #etention @hee%J are truly 8%at give employees a consistent reason #or
saying Ono t%an< youO 8%en tempte$ 8it% a Os8eeter o##er.O A#ter years o# stu$y an$
experience9 0Ei %as $etermine$9 an$ presente$ in t%e Retention )%eel9 8%at #actors
$o %ave t%e greatest impact on <eeping employees.
0Ei %as use$ t%is in#ormation to give employers t%e tools to meet t%e core nee$s t%at
<eep employees success#ul at t%eir *obs9 t%us re$ucing t%e %ig% costs associate$ 8it%
un8ante$ employee turnover.
3(
2sin the @hee% to I'pro+e E'p%oyee #etention
0EiGs Employee Retention Strategy is base$ upon t8o primary belie#s6
>1? 1t is $i##icult #or employers to retain goo$ employees i# t%ey $onGt %ave a
process to %ire t%e rig%t people in t%e #irst place.
>2? Retention processes must $irectly support t%e reasons t%at success#ul9
satis#ie$ employees stay.
0EiGs concentration on t%e center o# t%e Employee Retention )%eel provi$es
employers 8it% 1nternet/base$ tools t%at give employees systematic9 ongoing support
to be success#ul in t%eir 8or< an$ satis#ie$ 8it% t%eir employment.
The Center of EEiIs E'p%oyee #etention @hee%6
EI>BT FACTO#S
8efinition of successfu%6 my *ob is %elping me to gro8 personally9 pro#essionally an$
#inancially.
8efinition of satisfied6 my employer is provi$ing 8%at 1 nee$ to per#orm my *ob
success#ully.
3,
3%ese eiht centra% processes o# t%e Employee Retention )%eel are t%e #actors t%at
are most critical to an employeeGs *ob per#ormance success.
ATTIT28E FO# E$7LO4IN>
A process to clearly $e#ine t%e 8ay supervisors are expecte$ to interact 8it%
employees= a process to give employees a 8ay to express 8%at is most
important to ac%ieve *ob success= an$ a process to give employers a 8ay to
$emonstrate OEmploying :aluesO t%roug% employment policies.
3%is OEmployer 7ission StatementO is about %o8 an$ 8%o you %ire9 %o8 you
treat t%em9 an$ t%e organi;ationGs values as an employer. 1t is about ma<ing
sure t%at t%e :alues #or Employing
S
are communicate$ to your employees an$
consistently implemente$ t%roug%out your organi;ation. 1t is about t%e total
employment pac<age t%at goes beyon$ salary an$ tra$itional bene#its.
FIN8IN> CAN8I8ATES
A process t%at gives employers a compre%ensive 8ay to communicate to *ob
see<ers 8%at it ta<es to ac%ieve s%ort/term an$ long/term *ob success9 an$ to
attract t%e can$i$ates 8%o #it t%is criteria.
SO#TIN> A77LICANTS
A process t%at gives employers a 8ay to con#irm 8%et%er t%e attitu$es an$
be%aviors o# *ob see<ers are a matc% #or t%eir 8or< environment.
CBOOSIN> E$7LO4EES
A process t%at gives employers a 8ay to $e#ine t%e speci#ic intervie8 Auestions
t%at prove *ob see<er abilities to success#ully per#orm t%e target s<ills= an$ a
process t%at gives employers a 8ay to veri#y t%e accuracy o#
resumeIapplication $ata an$ intervie8 responses.
STA#TIN> E$7LO4EES
A process t%at provi$es a 8ay #or ne8 employees >be#ore per#orming t%e *ob?
to un$erstan$ O8%y t%e employers business exists=O O8%at ma<es t%e business
organi;ation success#ul=O O8%y t%e employeeGs *ob exists=O an$ O8%at it 8ill
ta<e #or t%e employee to ac%ieve *ob success.O
3-
INFO#$IN> E$7LO4EES
A process t%at gives employers a 8ay to provi$e essential in#ormation >#rom
#ive critical in#ormation sources? t%at is nee$e$ by employees to ma<e $aily
8or< $ecisions.
I$7#O3IN> E$7LO4EES
A process t%at gives supervisors an$ employees a 8ay to 8or< toget%er to
buil$ personali;e$ plans #or improving eac% employeeGs priority *ob s<ills= an$
a process t%at gives t%e employer a 8ay to O$eliver s<ills/improving training
curriculumO an$ to Omeasure t%e learning e##ectivenessO #rom t%e training
experiences.
#E@A#8IN> E$7LO4EES
A process t%at gives employers a 8ay to $e#ine an$ communicate exactly %o8
in$ivi$ual employee salaries are $etermine$= an$ a process t%at gives
employers a 8ay to provi$e employees 8it% extra incentive income t%at is
earne$ t%roug% t%e ac%ievement o# cas% generating business goals.
CHAPTER 5
37
RECOMMENDATIONS
& SUGGESTIONS
The I'portance of #etainin E'p%oyees
3%e c%allenge o# <eeping employees6 1ts c%anging #ace %as stumpe$ managers an$
business o8ners ali<e. &o8 $o you manage t%is c%allengeK &o8 $o you buil$ a
8or<place t%at employees 8ant to remain 8it% an$ outsi$ers 8ant to be %ire$ intoK
Success#ul managers an$ business o8ners as< t%emselves t%ese an$ ot%er Auestions
becauseTsimply putTemployee retention matters6
38
&ig% turnover o#ten leaves customers an$ employees in t%e lurc%= $eparting
employees ta<e a great $eal o# <no8le$ge 8it% t%em. 3%is lac< o# continuity ma<es it
%ar$ to meet your organi;ation2s goals an$ serve customers 8ell.
Replacing employees costs money. 3%e cost o# replacing an employee is estimate$
as up to t8ice t%e in$ivi$ual2s annual salary >or %ig%er #or some positions9 suc% as
mi$$le management?9 an$ t%is $oesn2t even inclu$e t%e cost o# lost <no8le$ge.
Recruiting employees consumes a great $eal o# time an$ e##ort9 muc% o# it #utile.
Lou2re not t%e only one out t%ere vying #or Auali#ie$ employees9 an$ *ob searc%ers
ma<e $ecisions base$ on more t%an t%e sum o# salary an$ bene#its.
"ringing employees up to spee$ ta<es even more time. An$ 8%en you2re s%ort/
sta##e$9 you o#ten nee$ to put in extra time to get t%e 8or< $one.
The Three #s of E'p%oyee #etention
3o <eep employees an$ <eep satis#action %ig%9 you nee$ to
implement eac% o# t%e
t%ree Rs o# employee retention6 respect9 recognition9 an$
re8ar$s.
3+
#espect is esteem9 special regar$9 or particular consi$eration given to people. As t%e
pyrami$ s%o8s9 respect is t%e #oun$ation o# <eeping your employees. Recognition an$
re8ar$s 8ill %ave little e##ect i# you $on2t respect employees.
#econition is $e#ine$ as Dspecial notice or attentionE an$ Dt%e act o# perceiving
clearly.E 7any problems 8it% retention an$ morale occur because management is not
paying attention to people2s nee$s an$ reactions.
#e<ards are t%e extra per<s you o##er beyon$ t%e basics o# respect an$ recognition
t%at ma<e it 8ort% people2s 8%ile to 8or< %ar$9 to care9 to go beyon$ t%e call o# $uty.
)%ile re8ar$s represent t%e smallest portion o# t%e retention eAuation9 t%ey are still an
important one.
Lou $etermine t%e precise met%o$s you c%oose to implement t%e t%ree Rs9 but in
general9 respect s%oul$ be t%e largest component o# your e##orts. )it%out it9
recognition an$ re8ar$s seem %ollo8 an$ %ave little e##ectTor t%ey %ave negative
e##ects. 3%e magic truly is in t%e mix o# t%e t%ree.
#e<ards
#econition
#espect
)%en you implement t%e Dt%ree RsE approac%9 you 8ill re$uce turnover an$ en*oy t%e
#ollo8ing6
(0
Increased producti+ity
#educed a0senteeis'
A 'ore p%easant <or? en+iron'ent 9for 0oth e'p%oyees and youK:
I'pro+ed profits
4urt%ermore9 an employer 8%o implements t%e t%ree Rs 8ill create a %ar$/to leave
8or<place9 one <no8n as %aving more to o##er employees t%an ot%er employers. Lou
become a %ar$/to/leave 8or<placeTone 8it% a 8aiting list o# applicants #or any
position t%at becomes availableTpurpose#ully9 one $ay at a time.
1/ Factors That Affect E'p%oyee #etention

7ost managers un$erstan$ t%e importance o# employee retention an$ its impact on t%e
overall %ealt% an$ vitality o# an organi;ation. 3%e importance o# retaining top
organi;ational talent 8ill only increase over t%e coming years as t%e massive co%ort o#
baby boomers begin to reac% retirement age ma<ing it easy #or younger employees to
#in$ 8or<.
(1
1n a previous article 8e i$enti#ie$ some use#ul tips to %elp improve employee
retention in your organi;ation. Fiven t%e importance o# employee retention9 8e %ave
compile$ anot%er list o# 10 important #actors t%at can a##ect employee retention in
your organi;ation.
G Shorten the feed0ac? %oop D
5o not 8ait #or an annual per#ormance evaluation to come $ue to give #ee$bac< on
%o8 an employee is per#orming. 7ost team members en*oy #reAuent #ee$bac< about
%o8 t%ey are per#orming. S%ortening t%e #ee$bac< loop 8ill %elp to <eep per#ormance
levels %ig% an$ 8ill rein#orce positive be%avior. 4ee$bac< $oes not necessarily nee$
to be sc%e$ule$ or %ig%ly structure$= simply stopping by a team memberGs $es< an$
letting t%em <no8 t%ey are $oing a goo$ *ob on a current pro*ect can $o 8on$ers #or
morale an$ %elp to increase retention.
G Offer a co'petiti+e co'pensation pac?ae M
Any team member 8ants to #eel t%at %e or s%e is being pai$ appropriately an$ #airly
#or t%e 8or< %e or s%e $oes. "e sure to researc% 8%at ot%er companies an$
organi;ations are o##ering in terms o# salary an$ bene#its. 1t is also important to
researc% 8%at t%e regional an$ national compensation averages are #or t%at particular
position. Lou can be sure t%at i# your compensation pac<age is not competitive9 team
members 8ill #in$ t%is out an$ loo< #or employers 8%o are 8illing to o##er more
competitive compensation pac<ages.
G Ba%ance <or? and persona% %ife M
4amily is incre$ibly important to team members. )%en 8or< begins to put a
signi#icant strain on oneGs #amily no amount o# money 8ill <eep an employee aroun$.
Stress t%e importance o# balancing 8or< an$ oneGs personal li#e. Small gestures suc%
as allo8ing a team member to ta<e an exten$e$ lunc% once a 8ee< to 8atc% %is sonGs
baseball game 8ill li<ely be repai$ 8it% loyalty an$ exten$e$ employment 8it% an
organi;ation.
G Be<are of 0urnout M
(2
Sta## a$eAuately to re$uce t%e amount o# un8ante$ overtime a team member must
8or<. Some employees en*oy t%e extra money t%at accompanies overtime %ours9
8%ile ot%ers 8oul$ rat%er spen$ t%eir time 8it% t%eir #amilies or $oing ot%er activities
t%ey en*oy. "urnout can be a lea$ing cause o# turnover. Recogni;e t%e 8arning signs
an$ give employees a brea< 8%en t%ey nee$ it.
G 7ro+ide opportunities for ro<th and de+e%op'ent M
.##er opportunities #or team members to acAuire ne8 s<ills an$ <no8le$ge use#ul to
t%e organi;ation. 1# an employee appears to be bore$ or burne$ out in a current
position o##er to train t%is in$ivi$ual in anot%er #acet o# t%e organi;ation 8%ere %e or
s%e 8oul$ be a goo$ #it. @obo$y 8ants to #eel stuc< in t%eir position 8ill no
possibility #or a$vancement or ne8 opportunities.
G The a0i%ity to pro+ide input and 0e ta?en serious%y M
Everybo$y %as opinions an$ i$eas9 some are better t%an ot%ers. &o8ever every team
member 8ants to #eel t%at t%eir input is 8elcome an$ 8ill be ta<en seriously 8it%out
ri$icule or con$escension. Some o# t%e greatest i$eas can come #rom t%e most
unli<ely o# places an$ people. reating a culture 8%ere input is 8elcome #rom all
level o# t%e organi;ational c%art 8ill %elp your organi;ation gro8 an$ encourage
employee retention.
G $anae'ent 'ust ta?e the ti'e to et to ?no< tea' 'e'0ers M
1tGs not a big surprise t%at one o# t%e greatest complaints t%at employees express in
exit intervie8s is a #eeling t%at management $i$nGt <no8 t%ey existe$. @obo$y 8ants
to #eel li<e *ust anot%er spo<e in a big 8%eel. 7anagers are very busy / everybo$y is
busy9 but it is crucial t%at managers an$ supervisors ta<e t%e time get to <no8 t%e
team members 8%o 8or< un$er t%em. Bearn an$ remember a team memberGs name9
8%at s<ills an$ talents t%ey bring to t%e table9 an$ 8%at t%eir business interests are.
3%e time spent by management getting to <no8 team members is 8ell investe$ an$
can eliminate t%e %ea$ac%es cause$ by %aving to continually %ire an$ re/train ne8
employees.
G 7ro+ide the too%s and trainin an e'p%oyee needs to succeed M
(3
@ot%ing can be more #rustrating to an employee t%an a lac< o# training or t%e proper
tools to success#ully complete %is or %er $uties. Lou 8oul$nGt try to buil$ a %ouse
8it%out a %ammer9 so 8%y s%oul$ an o##ice *ob be any $i##erentK 'rovi$ing a team
member 8it% t%e tools an$ training s%e nee$s to be success#ul s%o8s a commitment
an$ investment in t%at employee an$ 8ill encourage t%e team member to stay 8it% t%e
organi;ation.
G $a?e use of a tea' 'e'0erIs ta%entsF s?i%%sF and a0i%ities D
All team members %ave <no8le$ge9 s<ills9 an$ abilities t%at arenGt $irectly relate$ to
t%eir *ob $escription9 but are still use#ul to an organi;ation. Jtili;ing a team memberGs
talents in areas ot%er t%an t%eir current position 8ill in$icate to an employee t%at
management appreciates an$ recogni;es all t%at an employee %as to o##er to t%e
organi;ation. 3%is can also provi$e 8or< variety an$ %elps to brea< up t%e every$ay
grin$ o# 8or<.
G Ne+er threaten a tea' 'e'0erIs Co0 or inco'e M
)%ile t%reatening an employee 8it% termination or $emotion mig%t seem li<e a
sure#ire 8ay to get t%e results nee$e$ #rom %im or %er9 $oing so 8ill li<ely cause t%e
employee to leave t%e organi;ation. 'ut yoursel# in t%e employeeGs s%oes9 8%at is t%e
#irst t%ing you 8oul$ $o i# your *ob 8as t%reatene$K .$$s are you 8oul$ probably
up$ate your resume an$ start c%ec<ing #or open *ob postings expecting t%e 8orst. 1# a
team memberGs per#ormance is not 8%at you %a$ %ope$ it 8oul$ be9 8or< 8it% t%at
team member on 8ays to improve %is per#ormance9 saving termination only as a last
resort.
3a<e some time an$ seriously evaluate 8%at your organi;ation is $oing to encourage a
%ig% retention 8or<#orce. &aving a seasone$ an$ 8ell traine$ 8or<#orce can $eliver a
competitive a$vantage t%at is $i##icult to replicate. 3%e best part is most o# your
e##orts to retain your employees come #ree or 8it% little c%arge an$ o##er %uge returns
on a mangerGs investment in time an$ resources.
At 3%e Rainma<er Froup 8e are committe$ to %elping organi;ations ac%ieve a %ig%
retention 8or<#orce 8%ere team members truly en*oy coming to 8or< eac% $ay. )e
can %elp your organi;ation $evelop t%e strategies an$ programs to ma<e t%is %appen.
Five us a s%out to$ay= 8eG$ love to %ear #rom youR
((
#EASON FO# E$7LO4EE TO CO$E TO TBE
O#>ANISATIONA
'ay9
Bocation9
"ene#its9
A$vancement 'ossibilities9
Hob Security9
@ature .# )or<9
'ersonalI4amily 3ime.
1/ @A4S TO #ETAIN 4O2# E$7LO4EE
Retaining <ey personnel is critical to long term success o# an organi;ation. A
Retention Strategy %as become essential i# your organi;ation is to be pro$uctive over
time an$ can become an important part o# your %iring strategy by attracting t%e best
can$i$ates 8%o <no8 o# your trac< recor$ #or caring #or employees. 1n #act9 some
companies $o not %ave to recruit because t%ey receive so many Auali#ie$ unsolicite$
submissions $ue to t%eir %istory o# excellence in employee retention.
(,
Bo< do you et your e'p%oyees to Lfa%% in Lo+eL <ith your orani!ationA This is
a reat Muestion; So'e recent%y conducted research %ists these Top Ten
Strateies6
1; Treat your e'p%oyees %i?e you treat your 'ost +a%ua0%e c%ients;
1t is c%eaper to <eep your goo$ employees t%an it is to %ire an$ train ne8 ones.
Lour top 20/2,Q s%oul$ be courte$ as you 8oul$ court an$ t%en service your
top customers.
2; >et your e'p%oyees to LFa%% in Lo+eL <ith your orani!ation;
ommunicate your vision in a compelling 8ay. S%o8 everyone t%e role t%ey
%ave to contribute to t%is vision. reate opportunities #or people to connect
8it% eac% ot%er #or support an$ to improve communication in 8or< teams.
apture t%e &earts o# your 8or<#orce 8it%6 ompelling
visionI"alanceIelebration/4un
.pen ommunication6 1nternal listening is a priority9 multiple lines o#
communication >various c%annels.? 3%is is essential #or managing
c%ange in a positive 8ay 8it% less sabotage9 anger9 resistance9 an$ #ear.
reate partners%ips6 SAuas% status barriersI.pen t%e boo<sIpay #or
per#ormance >not titles?9 s%are t%e Oba$O times t%e Ogoo$O times.
5rive Bearning6 OFuarantee Employability9O Encourage Bi#e Bong
Bearning >3rain outsi$e o# *ob $escription?. Boyalty comes #rom
trusting your employees to $evelop t%eir s<ills #or t%e goo$ o# t%e
company an$ #or t%eir nee$s #or personal gro8t% an$ satis#action.
Emancipate Action6 4ree$om to 4ail9 re$uce bureaucracy9 c%allenge t%e
Ostatus Auo.O "reat%e li#e into your organi;ation. 5o not let your
employees stagnate.
(-
3; Stron retention strateies 0eco'e stron recruitin ad+antaes;
"; #etention is 'uch 'ore effecti+e <hen you put the riht person into the
riht Co0; Eno< the Co0K Eno< the e'p%oyee and their 'oti+ations;
&al# o# t%e 4ortune ,00 companies are no8 using assessments to more #ully
un$erstan$ eac% *ob an$ t%e so#t s<ills t%at are reAuire$ #or top pro$uction
8it%in t%eir speci#ic company culture. 3%ese benc%mar<e$ s<ills are t%en
compare$ against Auali#ie$ applicants to %elp $etermine 8%o 8ill be
success#ul in t%e position an$ #it 8ell 8it%in t%eir companyGs culture. 3%ese
assessments are also use$ as a po8er#ul pro#essional $evelopment tool to
en%ance t%e training o# continuous li#e/long learning >8%ic% is anot%er
po8er#ul retention strategy.? A$vance$ 4ibre ommunication is beginning to
use t%is assessment process in %iring.
&; $oney is i'portant 0ut it is not the on%y reason peop%e stay <ith an
orani!ation;
1# your compensation plan is in t%e top 20/30Q o# your in$ustry9 t%en money
8ill o#ten not be t%e reason 8%y people leave.
); E'p%oyee co''ittees to he%p de+e%op retention strateies is a +ery
effecti+e stratey;
Fet t%eir inputR As<9 8%at $o people li<e about 8or<ing %ereK )%at 8oul$
you li<e c%ange$ to ma<e your company a better place to 8or<K
Some companies9 suc% as A$vance 4ibre ommunication >A4?9 %ave
recogni;e$ t%at t%e special engineers an$ tec%nical experts t%at are t%e
cornerstones o# t%eir business9 reAuire special attention. :ictoria 'errault9 :'
o# A$ministrative Services #or A49 says t%at %er company %as i$enti#ie$ t%e
top 2,Q o# t%eir sta## an$ caters to t%ese special people by meeting t%eir
#inancial reAuirements an$ loo<ing #or t%e best pac<age o# bene#its t%at t%ese
people 8ill #in$ most positive as incentives to stay. 3%ey even %ave employee
committees t%at 8or< as O#ocus groupsO to $etermine 8%y people stay at A4
(7
an$ 8%at t%ey mig%t 8ant to see c%ange$ to ma<e A4 an even better place to
8or<.
,; Leadership 'ust 0e deep%y in+ested in retention;
7anagement must be s<ill#ul communicating company policies in a 8ay t%at
creates Obuy/inO #rom t%eir sta## an$ be open to employee input. &elp create
Oo8ners%ipO in your employees. 3%e companies 8it% t%e best retention
percentages are t%e same companies t%at are actively committe$ to retention.
3%ey <no8 t%at is costs less to <eep goo$ people t%an to continuously %ave to
replace unsatis#ie$ employees an$ managers.
-; #econitionF in +arious for'sF is a po<erfu% retention stratey;
1t $oes not %ave to cost a lot. JS 5ept. o# Babor / (-Q o# people leave t%eir
*obs because t%ey #eel unappreciate$.
.; #e'e'0erF the LFun FactorL is +ery i'portant to 'any e'p%oyees;
Freg 'eters9 'ast 'resi$ent an$ E. o# 7a%i @et8or<s in 'etaluma9 is one o#
many executives 8%o reporte$ t%at retention is o#ten relate$ to interpersonal
connections an$ amount o# 4J@ in 8or< teams. 3%e 4J@ 4actor is part o# t%e
generation o# 8or<ers t%at use activities as stress management in %ig%ly
c%arge$ pro$uction environments 8%ere long %ours are reAuire$. Freg %as
encourage$ 'ing/'ong tournaments an$ bas<etball leagues #or interpersonal
interaction9 #un9 an$ stress management. 3%oug% not everyone can participate
in p%ysical activities9 t%is sets t%e tone in a culture base$ on competition9
%ealt%I8ell/being9 an$ interactions t%at are inclusive beyon$ 8or<.
1/; Eno< the trends in 0enefit pac?aes; 8o your 0est to offer the ones your
e'p%oyees need;
onsi$er o##ering t%e best o# t%e rest.
(8
Best 7ractice Strateies for 8ri+in #etention
I;
CO$7ENSATION AN8
BENEFITS
II;
$ANA>E#
EFFECTI3ENESS
III;
5OB FIT AN8
O77O#T2NIT4
I3;
C2LT2#E AN8
@O#E EN3I#ON$ENT
ompensation an$ bene#its is
t%e number one $river o#
retention.
ompanies experience t%e
#ollo8ing compensation an$
bene#its c%allenges6
7anager e##ectiveness is t%e
secon$ most po8er#ul $river
o# retention. ompanies
experience c%allenges in t%is
area because t%ey put
employees in management
positions base$ on t%eir
Hob #it an$ opportunity is t%e
t%ir$ $river o# retention9 an$
maintains value #or %ig%
per#ormers.
omponents o# t%e *ob #it
retention $river inclu$e6
ompanies spen$ a
signi#icant amount o#
resources on t%eir culture an$
8or< environment even
t%oug% its ability to $rive
retention is limite$.
(+
ommunicating t%e value
o#
total re8ar$s pac<ages
ompeting 8it% #irms
o##ering elevate$ pay
pac<ages
4airly compensating
mi$/level per#ormers
.##ering employee
o8ners%ip opportunities
t%roug% eAuity
Co'pensation and Benefits
#etention 8ri+in
Strateies6
Strategy #16 7ro+ide
7erfor'ance Based
Co'pensation
>:ariable .ptions at All
'ro#ile$ ompanies?
.##er %ig%er compensation
to %ig% per#ormers
1nclu$e bonuses an$ stoc<
options 8it%in t%e
structure
o# compensation
Strategy #26 F%e=i0%e
Co'pensation 7hi%osophy
>ompany 5?
7aintain a team/oriente$
approac%
.##er #lexibility to
$i##erentiate by level o#
per#ormance
Strategy #36 7ro+ide EMuity
to A%% E'p%oyees
>ompany an$ ompany
5?
Allo8 o8ners%ip
5etermine t%e rig%t level
by
employee
per#ormance in ac%ieving
business goals rat%er t%an
t%eir management ability6
ompanies re8ar$
employees base$ solely
on
per#ormance rat%er t%an
people s<ills
Employees assume
management roles 8it%out
a$eAuate s<ills
Strateies to I'pro+e
$anaer Effecti+eness6
Strategy #46 Offer
$anae'ent and
Leadership 8e+e%op'ent
>ompany 5?
'rovi$e interactive
training
to s%are experiences an$
best practices across #irm
Jse opportunity to
$evelop
&1'.s
Strategy #56 Conduct a
Nuarter%y #etention
Counci%
>ompany A?
1nclu$e line/lea$ers an$
#irm/8i$e locations
'rovi$e retention up$ates
Strategy #66 7ro+ide
#etention Incenti+es
throuh Tareted
#etention >oa%s and
Accounta0i%ity
>ompany A?
5evelop business unit
retention goals approve$
by t%e E.
'rovi$e compensation
accor$ing to goal
ac%ievement
Recruiting t%e best
can$i$ates an$
employing
people 8%o #it 8it%in t%e
culture
'romoting in$ivi$ual *ob
$evelopment
'rovi$ing t%e
opportunity #or cutting/
e$ge 8or<
Strateies to I'pro+e
5o0 Fit
Strategies #7 and #86
E+a%uate Co%%ee Bires and
Taret Schoo%s
>ompany A an$ apital
.ne?
7onitor attrition an$
per#ormance metrics o#
%ires
3arget %iring e##orts
t%roug% most e##ective
c%annels
Strategy #96 8ri+e On-the-
5o0 8e+e%op'ent
>ompany 5?
7onitor per#ormance
an$
satis#action o# all %ig%/
value employees
.##er in$ivi$uali;e$
$evelopment action
plans
promote$ t%roug% senior
lea$ers%ip an$ $iversity
o##ices
%allenges in #ostering
retention t%roug% culture an$
8or< environment inclu$e6
.##ering t%e same 8or</
li#e bene#its to
geograp%ically $isperse$
employees
Bosing talent t%at
embo$ies t%e culture o#
t%e #irm
7easuring t%e impact on
retention
'rovi$ing #lexibility
Strateies to I'pro+e
Cu%ture and @or?
En+iron'ent
Strategy #106 Offer
Inno+ati+e @or?-Life
7rora's
>All 'ro#ile$ ompanies?
'ac<age o##erings to
promote a positive
8or<ing environment
Respon$ to employee
concerns
Strategy #116 Foster a
Fa'i%y-Friend%y Cu%ture
>ompany E?
.##er a myria$ o# 8or</
li#e
bene#its
'rovi$e #lexibility across
t%e #irm
Strategy #12: 8ri+e 7ositi+e
Cu%ture Throuh
Leadership
>All 'ro#ile$ ompanies?
ReAuire senior
management input an$
ongoing culture
sponsors%ip
3as< t%e senior
lea$ers%ip
8it% program
communication
Strategy #136 7ro+ide
Ser+ices for Schoo%-Aed
Chi%dren
7eet parenting nee$s in
innovative 8ays
.##er structure$
$evelopment #or sc%ool/
age c%il$ren
Eey Trends6 O<nership and 8ifferentiation of
#etention Strateies at 7rofi%ed Co'panies
3%e current researc% i$enti#ies #our main $rivers o# retention an$ %ig%lig%ts strategies
companies use to a$$ress retention c%allenges. 3%is #irst page provi$es a general
overvie8 o# t%e process $escribe$ in t%is brie# an$ i$enti#ies t%e #unctions t%at trac<
,0
an$ analy;e attrition $ata as 8ell as t%e groups t%at $evelop retention strategies. 1n
a$$ition9 t%is section outlines t%e #our main employee segments t%at companies target
t%roug% various retention strategies. 3%is $iscussion o# o8ners%ip an$ $i##erentiation
preclu$es t%e main bo$y o# t%e brie# in 8%ic% t%e retention $rivers an$ strategies
relate$ to compensation an$ bene#its9 manager e##ectiveness9 *ob #it9 an$ culture an$
8or< environment are outline$ in #urt%er $etail.
At all pro#ile$ companies t%e corporate &R $ivision trac<s an$ analy;es retention
metrics. 1n a$$ition9 &R #unctions at eac% business unit as 8ell as $iversity an$
lea$ers%ip groups measure attrition rates relevant to t%eir populations. Apart #rom
measurement9 &R plays t%ree main roles at pro#ile$ companies6 proposes an$
implements corporate/8i$e retention e##orts9 acts as a consultant to t%e business unit
by proposing retention/$riving strategies9 an$ supports senior management e##orts to
$etermine t%e most e##ective retention strategies on a case/by/case basis. 3%e #igure
belo8 $emonstrates t%e combination o# o8ners%ip bet8een senior management9 &R9
an$ t%e business units. 'lease re#er to Appen$ix A #or $etaile$ in#ormation on speci#ic
company practices involving eac% group.
Senior %eadership tea'6
3%e E. approves retention goals an$ program c%anges9 an$ actively
communicates goal c%anges an$ ac%ievement to all employees.
3%e senior lea$ers%ip team %elps i$enti#y <ey talent an$ $evelops <ey retention
strategies.
Senior lea$ers%ip participates in lea$ers%ip $evelopment programs an$ c%anges.
Corporate B#
orporate &R trac<s attrition levels9 analy;es voluntary an$ involuntary turnover
$ata9 an$ uses #ee$bac< #rom exit intervie8s an$ surveys to i$enti#y <ey retention
issues.
,1
&R acts as a consultant to business units an$ senior lea$ers in $eveloping an$
implementing targete$ retention strategies= &R communicates retention programs
to all employees.
Business 2nits and Line $anaers
"usiness units may implement speci#ic retention strategies base$ on nee$s.
Jnit lea$ers an$ managers consult 8it% corporate &R to $etermine e##ective
retention strategies an$ learn met%o$s o# implementation.
"usiness units an$ managers maintain #lexibility to provi$e a$$itional strategies as
nee$e$.
As note$ above9 companies $i##erentiate t%e retention #ocus base$ on nee$. All
pro#ile$ companies also provi$e autonomy to t%e business units an$ line managers in
a$$ressing retention on a case/by/case basis9 provi$ing a %ig% level o# #lexibility to
managers. 1n a$$ition9 t%e senior lea$ers%ip9 corporate &R9 an$ business units at all
companies target speci#ic retention e##orts on %ig% per#orming an$ %ig% potential
employees9 <ey minority employees9 an$ t%ose in critical customer #acing positions.
.nly one company $i##erentiates >#rom a corporate perspective? retention strategies
#or t%e mi$$le per#ormers >"/players? by o##ering a %ig%er percentage o#
compensation to t%ese employees in t%e coming year. 3%e table belo8 $escribes t%e
$i##erentiation o# retention strategies at pro#ile$ companies.
$yths a0out E'p%oyee $ora%e 7re+ent Co'panies
fro' Achie+in
#etention Success6
,2
5espite years o# researc% t%at point to #ar $i##erent solutions9 many companies use t%e
8rong tactics 8%en trying to improve employee morale9 satis#action an$ retention.
3%ese myt%s prevail9 in part9 because businesses %ave use$ t%ese met%o$s9 %o8ever
8rong9 #or a very long time an$ %ave become use$ to trying t%e same i$eas.
$yth O16 7eop%e 'ost often %ea+e a co'pany for 'ore pay;
Exit intervie8s9 con$ucte$ to learn 8%y people leave an organi;ation9 contain some o#
America2s greatest #iction. 'eople #reAuently say t%ey2re leaving #or more money
because it2s t%e easiest reason to give. 7ore o#ten t%e causes lea$ing to $eparture are
relate$ to issues t%at 8ere unsatis#ying in t%e *ob or t%e company.
3ypical issues t%at cause $issatis#action are company policies an$ proce$ures9 Auality
o# supervision9 8or<ing con$itions9 relations%ip 8it% t%e imme$iate supervisor an$
salary.
Les9 pay $oes matter. )%ile researc% s%o8s most people $on2t actually leave a *ob #or
more money9 t%ere are t8o important #acts6 :ery/lo8/income 8or<ers 8ill leave #or
more money because it2s a survival issue. 4or t%e rest o# 8or<ers9 t%e issue o# money
actually is about #airness. 'eople become $issatis#ie$ 8it% pay 8%en t%ey #eel it is
un#air 8it%in t%e company9 8it%in t%e in$ustry or 8%en pay $oesn2t seem to matc% t%e
amount or type o# 8or< reAuire$.
3o increase employee satis#action an$ retention9 companies ma<e more gains by
8or<ing to improve 8%et%er people #eel a sense o# ac%ievement9 recognition9
competence an$ gro8t%9 8%et%er t%ere are c%oices about %o8 8or< gets $one an$
8%et%er employees #eel respecte$ by management..
$yth O26 Incenti+e prora's produce %on-ter' profits and i'pro+e
producti+ity and 'ora%e;
So9 8%o $oesn2t li<e #ree stu##K &o8ever9 incentives suc% as gi#ts an$ cas% bonuses
#or meeting spee$ an$ volume goals $on2t a##ect employee commitment. 3%ey2re
really a t%ro8bac< to out$ate$ management belie#s t%at 8or<ers must be coerce$ in
,3
or$er to 8or< %ar$. All t%e extras $on2t a$$ up to t%e real glue t%at creates employee
commitment6 t%e c%ance to learn an$ gro89 meaning#ul 8or<9 goo$ supervisors an$
respect an$ appreciation #or a *ob 8ell $one.
1ncentives %ave been over/use$ particularly in t%e past $eca$e9 as management boo<s
toute$ t%e importance o# improving recognition o# excellent 8or<. Let9 stu$ies s%o8
t%at carrot/an$/stic< motivation actually $oes not pay o## in long/term company
pro#itability or employee satis#action or retention. 3o t%e contrary9 incentives can
%arm Auality 8%en employees aim #or spee$ or ot%er goals rat%er t%an Auality.
$yth O 36 7eop%e donHt <ant 'ore responsi0i%ity;
3%ey $on2t 8ant more 8or< i# t%ey2re alrea$y overloa$e$ $ue to lean sta##ing= but
people in$ee$ 8ant t%e opportunity to gro8 an$ $evelop t%eir s<ills9 a$vance t%eir
careers an$ %ave t%e opportunity #or greater variety. 0eep in min$ 8%at t%e researc%
con#irms6 'eople $o 8ant to try ne8 t%ings9 to #eel s<ill#ul an$ to experience t%e
personal satis#action o# %ig%er levels o# ac%ievement.
'eople $on2t nee$ a *ob promotion in or$er to gain more responsibility. 3%e same *ob
can be broa$ene$ to inclu$e more variety9 more contact 8it% $i##erent parts o# t%e
organi;ation an$ greater control over $ecisions on accomplis%ing 8or< tas<s.
$yth O"6 Loya%ty is dead;
@ot at all9 t%oug% it is ailing in many organi;ations. 'eople are see<ing greater 8or</
li#e balance t%an in t%e past9 an$ employers %ave ma$e great stri$es in provi$ing more
#lexible %ours an$ $ress co$es. Still9 people see< to ma<e a contribution9 an$
organi;ations t%at provi$e %ealt%y $oses o# t%e main satis#iers en*oy signi#icantly
lo8er turnover an$ %ig%er morale. 'ro#its are %ig%er9 too9 accor$ing to recent researc%
stu$ies.
3%ings %ave c%ange$9 in$ee$. 3o$ay2s 8or<ers 8ill9 in #act9 c%ange careers an$ *obs
muc% more o#ten. )%en t%e economy is goo$9 people %ave become muc% more at
ease in c%anging companies9 are more li<ely to acAuire ne8 s<ills an$ move to
,(
companies t%at o##er greater c%ance to use more o# t%eir <no8le$ge an$ more 8illing
to ta<e t%e ris<s o# starting ane8 at anot%er organi;ation.
)%at %as emerge$ in current management stu$ies are t%at t%e same Aualities t%at %ol$
employees are t%e ones t%at best serve t%e customers6 Employees 8%o can ma<e Auic<
$ecisions on be%al# o# t%e customer an$ t%e company= employees 8%o %ave a broa$er
scope o# responsibility t%at allo8s t%em some #ree$om an$ leverage to solve customer
problems= learning opportunities t%at give employees t%e s<ill#ulness to a$$ress
customer issues= an$ supportive management an$ supervisors 8%o use any mista<es
t%at occur as teac%ing opportunities.
$yth O&6 I'pro+in e'p%oyee satisfaction is e=pensi+e;
Researc% tells us t%e true satis#iers can2t even be boug%t6 career gro8t%9 meaning#ul
8or<9 respect an$ appreciation an$ being able to in#luence %o8 8or< gets $one. 1n
t%ese leaner times employers %ave t%e same opportunity to gain true loyalty $espite
lo8ere$ bu$gets.
3%e trin<ets an$ pri;es given in recognition an$ re8ar$s programs aren2t necessary
ingre$ients #or $eveloping an engage$ 8or<#orce. 3%e DglueE t%at %ol$s people is
ma$e o# muc% $i##erent stu##6 7anagement t%at listens an$ respon$s to employees2
i$eas about improving service9 supervisors 8%o support people2s gro8t% an$
initiative9 training in %o8 to $o t%e *ob success#ully9 goo$ relations%ips 8it%
co8or<ers an$ genuine appreciation #or a *ob $one 8ell. 3%ere are no costs incurre$
to buil$ or en%ance t%ese motivators.
$yth O)6 E'p%oyee satisfaction is Pf%uff;Q
5oes %aving engage$ 8or<ers ma<e a $i##erence in t%e bottom lineK Stu$ies no8
s%o8 t%at lo8er turnover an$ greater levels o# employee satis#action %ave a $e#inite
positive impact on customer satis#action an$ pro#itability9 8%ic% are t%e <ey #actors in
company gro8t% an$ sustainability. onsi$er t%ese #acts6
,,
P A strong lin< 8as #oun$ in a stu$y by 'rice8ater%ouseoopers bet8een employee
retention an$ t%e Auality o# service as rate$ by companies2 customers.
P Accor$ing to t%e American Society o# 3raining ! 5evelopment9 organi;ations t%at
investe$ t%e most in training %a$ %ig%er gross margins an$ income per employee.
P 3%e cost o# replacing an employee 8%o leaves %as been estimate$ by various stu$ies
to be bet8een 70 an$ 200 percent o# t%at 8or<er2s annual salary.
P 3%e ouncil on ompetitiveness #oun$ t%at a 10/percent increase in e$ucation %as a
more positive impact on pro$uctivity t%an a 10/percent increase in 8or< %ours.
3%e bottom line on t%e bottom lineK 1nvesting in people an$ using t%e most e##ective
management practices increases pro#its.
$yth O,6 Super+isors are the pro0%e';
7any senior lea$ers express $ismay about t%e Auality an$ actions o# t%eir mi$$le
managers an$ #ront/line supervisors. 3%e Dblame gameE is ol$9 yet t%e solutions are
stri<ingly similar to t%ose reAuire$ to buil$ an engage$ 8or<#orce.
1n most organi;ations to$ay9 supervisors %ave more people reporting to t%em t%an in
t%e past9 more $eman$ing customers t%an ever an$ greater amounts o# c%ange M all
occurring at t%e same time. Let9 t%e amount o# training provi$e$ to managers an$
supervisors in many organi;ations is minimal. 7ore importantly9 t%e amount o# time
t%at senior managers spen$ in $ialogue 8it% mi$$le an$ line managers also is
minimal.
7i$$le managers an$ supervisors can appear resistant to improvement e##orts.
&o8ever9 t%e true #ailure exists in our un$erstan$ing o# t%eir 8orl$9 t%e c%allenges
t%ey #ace an$ t%e support t%ey nee$ in or$er to be success#ul.
Success#ul organi;ations see< to buil$ team8or< bet8een senior lea$ers an$ mi$$le
managers an$ line supervisors >8%ic% is a <ey ingre$ient in creating team8or<
t%roug%out t%e company?.
,-
$yth O -6 $y co'pany*industry*peop%e are differentK
Les9 every company is uniAue9 an$ every in$ustry %as its o8n set o# unusual
c%allenges. &o8ever9 a very costly mista<e is ma$e 8%en 8e believe in#ormation
#rom ot%er sectors $oesn2t apply to us or our organi;ation.
Retention researc% stu$ies cross all in$ustries9 all types o# 8or< settings an$ in varie$
economic con$itions. Still9 t%e same results come up time an$ again. )e buil$
employee loyalty M an$9 in$irectly9 customer loyalty M t%roug% provi$ing people 8it%
gro8t% an$ learning opportunities9 minimi;ing re$ tape9 allo8ing people to t%in< an$
ma<e goo$ c%oices9 supporting mi$$le managers an$ #ront/line supervisors an$
appreciating t%e e##orts t%at people give to %elp our customers.
1t2s $o8nrig%t $angerous to ignore t%ese #in$ings M ris<y to t%e bottom line an$ t%e
organi;ation2s #uture.
Barriers to Success

K Bac< o# support #rom management team.
K 1nability to provi$e %ar$ numbers.
K ompany culture $oes not support c%ange.
K "ac< las% #rom single 8or<ers.
K 4ailure o# ot%er programs $ue to lo8 utili;ation.
K 7anagers $o not vie8 8or<Ili#e initiatives as business tools t%at impact
employee retention.
,7
SOL2TION FO# TBE 7#OBLE$
FIN8IN> TBE CA2SE OF ATT#ITION
&ave a survey among employees to #in$ t%e reasons #or attrition. 1# possible9 %ave
exit intervie8s to <no8 t%e reasons #or resignations. 1# a <ey employee resigns9 it
s%oul$ be ta<en up on a priority basis an$ t%e senior management s%oul$ meet t%e
employee to $iscuss %is reasons #or leaving an$ evaluate 8%et%er %is issues bear merit
an$ 8%et%er t%ey can be resolve$. Steps can be ta<en to avoi$ similar reasons #rom
occurring in t%e case o# ot%ers9 in similar positions.

,8
@hat can 0e doneA

3%oug%9 it is impossible to scrap problems totally9 t%ere are certain 8ays by 8%ic%
"'. managements can tac<le attrition. Since t%e every organisation is uniAue9 t%ese
companies nee$ to $evelop innovative 8ays to tac<le t%eir problems. &uman
Resources $epartment o# companies must a$$ress t%ese issues9 an$ along 8it% t%e
management nee$ to evolve strategies to retain employees at all levels.

At the ti'e of #ecruit'ent

Select t%e rig%t people t%roug% competency screening.
Jse psyc%ometric tests to get people 8%o can 8or< at nig%t an$ %an$le t%e
monotony.
.##er an attractive9 competitive9 bene#its pac<age.
7a<e clear o# per#ormance en%ance$ incentives an$ ot%er bene#its. 0eep t%ese
promises9 later.
"'.s can set up o##ices in smaller to8ns9 or recruit #rom t%ere9 8%ere
opportunities are #e8.
AT TBE OFFICE
An employee2s 8or< must be communicate$ to %im clearly an$ t%oroug%ly.
3%e $etails o# t%e *ob9 its importance9 t%e 8ay it s%oul$ be $one9 maximum
time t%at can be allotte$ to complete it etc.9 must be ma$e clear. 1# t%ere are
c%anges to any o# t%ese9 let t%e employee <no8 at t%e earliest
Five t%e employees necessary tools9 time an$ training. 3%e employee must
%ave t%e tools9 time an$ training necessary to $o t%eir *ob 8ell / or t%ey 8ill
move to an employer 8%o provi$es t%em.
&ave a person to tal< to eac% employee at regular intervals. Bisten an$ solve
employee complaints an$ problems9 as muc% as possible. 4airness an$
impartial treatment by seniors is important. &elp employees manage stress9
,+
bot% at 8or< an$ i# possible9 o## 8or< too. Five t%em special concessions9
8%en in nee$. 3reat t%e employees 8ell ! provi$e $ignity o# *ob.
3%e Auality o# t%e supervision an employee receives is critical to employee
retention. 4reAuent employee complaints arise on t%is issue.
'rovi$e t%e employees a stress #ree 8or< environment. 'eople 8ant to en*oy
t%eir 8or<. 7a<e 8or< an$ 8or< place c%eer#ul an$ #un/#ille$ as possible.
7a<e sure t%at employees <no8 t%at t%eir 8or< is important #or t%e
organisation. 4eeling value$ by t%eir employer is <ey to %ig% employee
motivation an$ morale. Recogni;e t%eir strengt%s an$ %elp t%em to improve
t%ose t%ey lac<.
Employees must #eel re8ar$e$9 recogni;e$ an$ appreciate$. Fiving perio$ical
raise in salary or position %elps to retain sta##.
.##er excellent career gro8t% prospects. Encourage ! groom employees to
ta<e up %ig%er positionsIopenings. 1# t%ey $on2t get opportunity #or gro8t%
8it%in t%e organisation9 t%ey 8ill loo< else8%ere #or it.
)or</li#e balance initiatives are important. 1nnovative an$ practical employee
policies pertaining to #lexible 8or<ing %ours an$ sc%emes9 granting
compassionate an$ urgency leave9 provi$ing %ealt%care #or sel#9 #amily an$
$epen$ants9 etc. are important #or most people. )or</li#e balance policies
8oul$ %ave a positive impact on retaining s<ille$ employees9 as 8ell as on
attracting %ig%/caliber recruits.
1mplement competency mo$els9 8%ic% are 8ell integrate$9 8it% &R processes
li<e selection ! recruitments9 training9 per#ormance appraisal an$ potential
appraisal.
Niht shifts
1. &ave $octors to a$vise t%em about %ealt% problems an$ t%e 8ays an$ means to
$eal 8it% t%em. 'rovi$e $ietary a$vice6 / 5os an$ $onts. &elp t%em to
maintain t%eir %ealt%.
-0
2. .rgani;e programmes 8%ere people #rom ot%er pro#essions9 8%o %ave nig%t
s%i#ts tal< to "'. employees about t%eir experiences. .t%er organisations li<e
Army9 Rail8ays9 &ospitals an$ various government services etc.9 also %ave
nig%t s%i#ts.
3. .rgani;e training9 counselling an$ $evelopment programmes #or employees.
3ell t%em t%at t%eir 8or< is important. Encourage t%e best per#ormers to s%are
t%eir experiences 8it% ot%ers an$ gui$e ot%ers. 3%e emp%asis is to create t%e
$esire to
learn9 en*oy an$ be passionate about t%e 8or< t%ey $o.
(. 1# nee$e$9 provi$e special lig%ts in t%e o##iceI8or<place to ensure t%at t%eir
bo$ies get su##icient vitamin 5.
,. .ne $istinct $isa$vantage o# nig%t s%i#ts is t%e sense o# $isorientation 8it%
#rien$s an$ #amily members. oncentrate on t%is problem an$ $evelop
innovative solutions an$ 8ays to $eal 8it% it. A$$itional %oli$ays #or 8or< on
national %oli$ays an$ #estivals9 %oli$ays #or #amily #unctions etc.9 can go a
long 8ay.
CHAPTER 6
-1
EMPLOYEE
RETENTION
BENEFIT/ADAANTA
GE
E'p%oyee #econition Increases #etention

1t seems t%at no8 more t%an ever employee recognition is limite$ at best in many
organi;ations. Jn#ortunately many managers $onGt un$erstan$ t%e importance o#
-2
recogni;ing a team memberGs %ar$ 8or< an$ a *ob 8ell $one. 7any mig%t even as<
8%y t%ey s%oul$ recogni;e t%eir employees 8%en t%ey are O*ust $oing t%eir *ob.O
3%e trut% is t%at recogni;ing employees #or t%eir %ar$ 8or< is one o# t%e least
expensive an$ easiest 8ays to improve t%e level o# employee retention in your
organi;ation. 3%e return on investment #or a managerGs time an$ limite$ expenses can
be incre$ible.
Recogni;ing an employeeGs per#ormance rein#orces positive be%avior an$ encourages
a$$itional positive be%avior. 1# a team member #eels t%at %e or s%e is appreciate$ t%ey
8ill be muc% more li<ely to repeat t%eir be%aviors in t%e #uture an$ even put out more
e##ort t%an be#ore. )%en a business lea$er un$erstan$s t%e po8er o# recogni;ing %is
or %er employees t%e culture o# an organi;ation reacts to t%is recognition an$ moves in
a positive $irection %elping to retain more employees.
Employee recognition can be as simple or as extravagant as one $esire. 3%e #ollo8ing
is a s%ort list o# simple 8ays to recogni;e team members #or a *ob 8ell $one an$
improve retention in your organi;ation.
P A simple Ot%an< youO or Onice *obO given in regular #reAuency can signi#icantly
boost team morale. .#ten times a team member 8ill greatly appreciate t%e time you
spent to #in$ %im at %is $es< an$ $eliver t%e message in person.
P Sen$ a t%an< you car$ or e/car$. Also p%otocopy t%e t%an< you an$ $ocument t%e
reason #or t%e recognition in t%e employeeGs #ile. Bet t%e employee <no8 you $i$ t%is /
it 8ill let %er <no8 t%at %er %ar$ 8or< 8ill not be #orgotten.
P 7ovie tic<ets9 gi#t certi#icates9 or an engrave$ gi#t are excellent re8ar$s #or an
employee 8%o %as excelle$ or put in t%e extra e##ort to ma<e a pro*ect %appen.
P Recogni;e t%e team memberGs contribution in #ront o# members o# management.
3%is can re$uce t%e ten$ency #or employees to #eel t%at t%eir supervisors ta<e all t%e
cre$it #or t%eir %ar$ 8or<.
-3
P Recogni;e loyalty an$ excee$ing expectations. 7ention t%e team memberGs %ire
anniversary9 large contract 8on9 or surpassing o# a sales goal in t%e company
ne8sletter or at a sta## meeting.
P 0no8 %o8 to recogni;e your sta##. @ot all sta## members 8ant to be single$ out at a
gat%ering o# %un$re$s o# #ello8 team members9 8%ile #or ot%ers it 8oul$ ma<e t%eir
8ee<. 3%e approac% to recogni;ing team members can vary greatly by generational
co%ort. Lou mig%t seriously embarrass a baby boomer by %aving t%em stan$ up in
#ront a
Froup o# t%eir peers an$ $iscuss t%eir recent success9 8%ile a Fen U/er 8ill relis% t%is
opportunity.
#etention Strateies Be%p to 8ri+e #e+enue
>ro<th

Employee satis#action is essential to any e##ective employee retention strategy / any
goo$ &R manager <no8s t%at. &o8ever #e8 managers t%in< o# t%e impact t%at
employee satis#action %as on t%eir customers an$ ultimately company pro#its. .ne can
-(
assume t%at %appier9 more pro$uctive employees 8ill ma<e more sales9 treat
customers better9 an$ ultimately ma<e more money #or t%e company9 but #e8
companies %ave analy;e$ t%is assumption to t%e extent t%at Sears9 Roebuc< an$
ompany %as. Sears %as put t%is common assumption to t%e numbers test an$ t%e
results are intriguing to say t%e very least.
1++2 8as t%e 8orst year on recor$ #or Sears9 losing almost ( billion $ollars on over ,2
billion $ollars in retail sales. 3%e early an$ mi$ 1++0s 8ere truly trying times #or t%e
retail giant an$ teste$ t%e 8ill an$ resolve o# managers an$ employees ali<e. 5uring
t%is time t%e company 8as in near s%ambles9 morale 8as lo89 revenues 8ere
su##ering9 an$ t%e bottom line 8as %emorr%aging re$ in<. 3%is 8as in star< contrast to
nearly a century o# stellar results t%at Sears %a$ com#ortably en*oye$. 4or Sears9
somet%ing nee$e$ to be $one9 an$ #astR
Sears began t%eir turnaroun$ by i$enti#ying t%ree <ey ob*ectives6 reating a
compelling place to 8or<9 a compelling place to s%op9 an$ lastly creating a
compelling place to invest. .ne o# t%e tools use$ to establis% t%ese ob*ectives 8as t%e
employee/customer/pro#it c%ain. 3%e employee/customer/pro#it c%ain is essentially a
#lo8 c%art t%at $iagrams revenue creation starting 8it% employee attitu$es an$
satis#action9 #ollo8e$ by its e##ect on customer satis#action9 an$ ultimately t%e e##ect
on revenue an$ bottom line pro#it generation.
.ne t%ing Sears reali;e$ it nee$e$ to $o 8as exert a greater e##ort #ocusing on t%e
customer. 3%is is o#ten times easier sai$ t%an $one #or many organi;ations. &o8ever
Sears too< an innovative approac% to increasing customer #ocus. "ase$ on t%e
employee/customer/pro#it c%ain9 it reali;e$ t%at it coul$ not better #ocus on t%e
customer 8it%out #irst #ocusing on its employees.
4or Sears 70Q o# its 8or<#orce 8as part/time status an$ turnover among its part/time
8or<#orce %a$ become alarmingly %ig%. Sears suspecte$ t%at lo8 morale an$ poor
employee attitu$es to8ar$s t%e company 8ere to blame. Sears began a rigorous
process o# measuring employee attitu$es an$ satis#action via a 70 Auestion employee
survey. 3%e results o# t%is survey 8ere t%en *uxtapose$ to customer satis#action
-,
surveys an$ ultimately compare$ to revenue an$ pro#it tren$s #or t%e company. 3%e
correlations $ra8n #rom t%e $ata 8ere greater t%an Sears coul$ %ave ever imagine$.
Jn$oubte$ly Sears expecte$ to see some positive correlation bet8een employee an$
customer satis#action an$ ultimately revenue an$ pro#it generation= %o8ever t%ey
8ere ama;e$ to see *ust %o8 great an impact employee satis#action levels %a$ on t%e
bottom line. 3%e $ata reveale$ t%at #or eac% #ive point improvement on t%e employee
attitu$e scale9 t%ere 8as a subseAuent 1.3Q improvement in customer satis#action9 an$
a 0.,Q increase in revenue gro8t%.
A 0.,Q increase in revenue mig%t soun$ miniscule9 %o8ever 8%en it is base$ on
revenues o# over ,0 billion $ollars it a$$s up Auic<ly an$ signi#icantly. 4or Sears t%is
8oul$ eAuate to a 2,0 million $ollar increase in revenues a yearR 3%is revenue
increase $oes not reAuire investments into a$vertising9 ne8 #acilities9 or improve$
operations9 only an investment into t%e satis#action an$ %appiness o# employees.
3%ere are also cost savings t%at can be attribute$ to improve$ levels o# employee
satis#action. 1t s%oul$ come as no surprise t%at %appy employees stay in t%eir *obs
longer t%an un%appy employees. "y #ocusing on increasing employee satis#action
Sears 8as able to concurrently increase revenues an$ re$uce t%e costs associate$ 8it%
employee turnover. Sears 8as also able to $etermine t%at employees 8it% greater
levels o# satis#action an$ a #avorable attitu$e to8ar$s t%e company 8ere more li<ely
to spea< positively about t%e company an$ recommen$ s%opping t%ere to #rien$s an$
#amily members.
"y increasing employee satis#action Sears 8as able to generate #ree 8or$ o# mout%
a$vertising sprea$ by its employees9 t%us in a 8ay re$ucing t%e reliance on pai$
a$vertising to generate revenue. Sears reali;e$ t%e importance o# its employees an$
t%eir levels o# satis#action an$ ma$e it a corporate goal to increase levels o# employee
satis#action t%roug%out t%e company.
Sears #eels t%at employee satis#action levels are so important to t%e companyGs %ealt%
an$ vitality t%at it treats attitu$e an$ satis#action numbers t%e same as O%ar$O #inancial
numbers. Sears is so committe$ to t%ese numbers t%at it %as t%em au$ite$ by an
--
accounting team to ensure vali$ity an$ reliability *ust as it $oes 8it% all o# its internal
#inancial measures.
4or Sears its turnaroun$ $i$ not ta<e place overnig%t. 1t too< several years o# %ar$
8or< an$ $e$ication #rom managers an$ employees at all levels. 1mproving levels o#
employee satis#action 8as not t%e sole contributing #actor to SearsG remar<able
turnaroun$. &o8ever it is #air to assume t%at 8it%out t%e #ocus on t%e employee as a
base to better #ocus on t%e customer t%e turnaroun$ at Sears 8oul$ not %ave been as
Auic< or ama;ing as it 8as.
As business lea$ers 8e s%oul$ all pay care#ul attention to t%e approac% t%at Sears too<
to improving its bottom line. 3%e urge to $rastically cut costs t%roug% outsourcing9
layo##s9 re$ucing bene#its9 an$ streamlining operations mig%t 8ell be overly complex
solutions to a relatively simple problem. 1n lieu o# cost cutting initiatives to preserve
pro#it margins9 a customer #ocuse$ approac% mig%t be a better solution. As 8e can
learn #rom Sears #ocusing on t%e customer ultimately begins by #ocusing on t%e
employees 8%o serve t%e customer. Five it a s%ot9 your employees9 your customers9
an$ ultimately your s%are%ol$ers 8ill t%an< you #or itR
-7
CHAPTER !
FACTS & FINDINGS
E'p%oyee #etention Strateies for #educin
E'p%oyee Turno+er Costs
At 3%e Rainma<er Froup 8e are committe$ to %elping your organi;ation 7aximi;e
'ossibility by i$enti#ying an$ retaining top per#ormers to ac%ieve a %ig% retention an$
%ig% per#ormance 8or<#orce.
-8
)e un$erstan$ t%at time is money to your organi;ation. Every minute o# every $ay
t%at your employee retention problems persist your organi;ation is losing valuable
time9 energy9 an$ resources.
)it% t%e use o# t%e po8er#ul tools at our $isposal9 our employee retention experts 8ill
get to <no8 your team an$ organi;ational culture better t%an you ever coul$ %ave
imagine$. "y $oing so 8e can get $o8n to t%e real causes o# employee turnover in
your organi;ation an$ $evelop an employee retention program t%at is rig%t #or your
team.
.ur employee retention programs $eliver results / 8e guarantee itR
.ur clients al8ays see a si;able return on investment in t%e #orm o# improve$
pro#itability9 re$uce$ employee turnover9 an$ en%ance$ employee morale.
Stop un8ante$ employee turnover $ea$ in its trac<s an$ get bac< to $oing 8%at you
$o best6 gro8ing an$ lea$ing your organi;ation.
SO$E E1A$7LES OF NE@ A>E B#
7#ACTICES
L> CO$7ANIES #ETENTION 7OLICIES6
3o retain employees it is very important to give t%em a #eeling o# belongingness in t%e
company. 4or t%is t%ey con$uct many activities li<e6
-+
1. 3%ere2s a 8ee<ly meeting o# every $ept 8%ere t%e employees are as<e$ 8%at
t%eir expectations are #rom t%e company to ma<e t%e atmosp%ere an$ climate
*oy#ul.
2. A#ter every 1, $ays one $ay $%& T'() is con$ucte$ >8it%in ,0/70 0ms?
#rom t%e company. 'laces li<e Essel 8orl$9 Bonavla9 Alibag% "eac%9 7at%eran
&ill Station etc 8%ere t%e employee can %ave #un an$ relax #rom t%eir regular
8or<. 3%e $estination o# t%e #un trip is $eci$e$ by t%e employee t%emselves.
3%e expense is %el$ by t%e company.
3. Every Employee is given a Baptop9 7obile >Rs ,00 car$ #ree every mont%? or
Ban$line '%one #ree.
(. *+, D!,-. Every 8ee< t%e employee can %ave 2 Dmy $aysE9 i.e. #or t8o $ays
a 8ee< t%ey can %ave t%eir o8n time a8ay #rom o##ice a#ter 1.30 pm.
,. !nn#al Day M 3%e annual $ay is on 2(
t%
$ec. Every employee gets a gi#t
vouc%er9 Bunc% at some goo$ %otel an$ a #un tour to Essel 8orl$ or 8ater
0ing$om etc.
-. Annually t%ey also %ave inter$epartmental matc%es li<e ric<et 7atc%es9
:olleyball 7atc%es etc to improve team buil$ing an$ #eeling o# belongingness.
7. /#lt#re6 .n every 1n$ian #estival t%ere2s a big celebration.
a. Ex6 .n San< rant t%ey %ave a *01!'T(,! JE2!&-. 3%ey #ly
colour#ul <ites an$ %ave competition bet8een t%e employees.
b. Ex6 .n 5i8ali t%ey en*oy s8eets an$ crac<ers 8it% tra$itional
$resses.
8. Departmental 3#nc": Every$ay one $ept %ave lunc% toget%er. Eac% an$ every
member o# t%e t%at 5ept eat an$ $rin< toget%er. 3%is %elps in improving t%e
team spirit an$ t%e #eeling o# belongingness in t%e $ept.
+. Employee o# t%e 8ee</ !W!'D6
70
a. Every 8ee< one 8or<er is %onoure$ base$ on t%e per#ormance o# t%e
8or<er. 3%is improves t%eir moral an$ encourages t%em to 8or< %ar$
#or t%e coming 8ee<.
b.Every mont% one employee is %onoure$ as Employee o# t%e 7ont%
c.Annually one employee is %onoure$ as Employee o# t%e year.
3%eir names are $eclare$ on t%e @otice boar$ an$ company maga;ine
8%ic% encourages ot%ers also to 8or< better.
10. @e8 employees *oining t%e company are given a trainin o# 8/10 $ays.
3%e training consists o# in$uction an$ orientation program along 8it% a 2 $ay trip.
3%is is a goo$ ice brea<ing session an$ %elps t%em to <no8 t%eir colleague. 3%e
lasts t8o $ays training is con$ucte$ in t%e actual *ob site.
11. 1ig"er ed#cation6 1# any employee 8is%es #or %ig%er e$ucation t%e company
sen$s t%e employee to Sout% 0orea #or training an$ encourages t%em to stu$y
%ar$.
12. /ar is provi$e$ to t%e entire manager an$ above. 3%e petrol expense are ta<en
care by t%e company.
13. Annually every employee gets a , $ays pai$ leave.
1(. 3%e company provi$es t%e #acility o# all in$oor games along 8it% a S8imming
pool #or t%e re#res%ment o# t%e employee.
Ex. 3able 3ennis9 %ess9 "a$minton9 Snoo<er9 etc.
1,. Vuarterly t%e 75 $oes per#ormance appraisal o# every B1@E an$ c%ec<s
8%ic% line %as ac%ieve$ pro$uction as per expectation or more t%an t%at. All
t%e members o# t%e line are gi#te$ an$ t%eir names are $isplaye$ in t%eir
71
annual maga;ine. 3%is encourages t%e Bine members to 8or< %ar$ an$
e##iciently.
3%e 3esco campus at )%ite#iel$ in "angalore also %ouses a learning centre 8%ere
employees can register t%emselves #or a retail certi#ication course #rom no less t%an
t%e 1n$ian 1nstitute o# 7anagement >117?9 "angalore. D)e %ave also $one a8ay 8it%
t%e probation perio$ because 8e are in t%e business o# training people9E says
:en<ates%.
OBSE#3ATIONS ( FIN8IN>S ON
E$7LO4EE #ETENTION ST#ATE>IES
E'p%oyee #etention StrateiesR4our >uide for the Best E'p%oyee #etention
Strateies to #etain 4our Best E'p%oyees
E'p%oyee Turno+er is an Inside 5o0
#oss B%a?eF PThe E'p%oyee #etention $anaerQ
72
Some employee turnover is inevitable= a spouse gets a promotion in anot%er city or
state9 or capable employees $eci$e to c%ange careers.
7any employers un$erta<e e##orts to re$uce or eliminate external OpullO #actors suc%
as ina$eAuate bene#its t%at prompt goo$ employees to leave #or ot%er employers.
&o8ever9 most employee turnover is cause$ internally9 by reasons employers usually
can at least in#luence9 i# not correct.
7any employers also un$erta<e e##orts to re$uce or eliminate internal Opus%O #actors9
inclu$ing poor 8or</li#e balance or boring assignments9 t%at also prompt goo$
employees to leave.
1n a$$ition9 some employers %ave managers 8%ose be%aviors greatly increase
employee turnover9 yet t%eyGre un8illing to a$$ress t%em9 even t%oug% t%eyGre very
costly.
&ereGs an example.
A very success#ul mi$/si;e a$vertising agency 8as run by a %ig%ly in$epen$ent
entrepreneur 8%o 8as also its #oun$er.
Alt%oug% t%e agencyGs creative an$ account services 8ere excellent9 t%e presi$entGs
%ars%9 critical9 insulting9 an$ $o8nrig%t abusive 8ays o# tal<ing to an$ treating most
employees meant t%e #irm #reAuently %a$ an employee turnover problem.
apable copy8riters9 me$ia $irectors9 account executives9 an$ secretaries le#t on a
regular basis. As soon as a resignation 8as given9 t%e presi$ent 8oul$ apologi;e an$
attempt to convince t%e employee to stay. .t%er employees 8ere also broug%t into t%e
e##ort9 an$ as<e$ to tal< in$ivi$ually 8it% t%e resigning employee.
1t 8as never success#ul= not one employee $eci$e$ to stay a#ter giving t%eir
resignation9 an$ most 8ent on to eAual9 i# not better9 positions at ot%er agencies.
73
So t%e agency 8ent t%roug% t%e process o# placing employment a$s9 recruiting9
intervie8ing9 testing9 %iring9 orienting9 an$ training ne8 employees again an$ again. 1t
8as time/consuming9 an$ #inancially costly. Replacement costs #or most o# t%ese
employees amounte$ to ,0Q to 1,0Q o# t%eir annual salaries. Let9 even t%oug% t%e
presi$ent %ate$ suc% time an$ #inancial costs9 %e re#use$ to c%ange anyt%ing about
%o8 %e communicate$ 8it% employees. 1n e##ect9 %e 8as 8illing to continue to O$o it
my 8ayO even t%oug% t%e conseAuences 8ere substantial an$ unnecessary.
As long as %e 8as in business an$ paying %imsel# a %ig% salary9 t%ere 8oul$ be no
c%anges.

7any organi;ations 8oul$ not tolerate suc% an executive.
Some organi;ations tolerate suc% managers an$ executives as long as results9
especially revenues9 continue9 an$ i# t%ey can continue to replace employees9 #iguring
t%eyGre staying a%ea$.
At some point9 %o8ever9 it isnGt 8ort% it. 3%e employer gets a ba$ reputation= Auali#ie$
people $onGt apply9 or sc%e$ule intervie8s. ompetitors #in$ t%ey can easily o##er
better 8or< environments by ma<ing certain t%eir managers treat employees
respect#ully.
)%at can you $o i# you %ave a manager or executive creating employee turnover in a
similar mannerK
1# youGre an organi;ation run by t%is type o# #oun$er9 t%ere o#ten isnGt muc% you can $o
as long as t%ey continue to ma<e a large sum o# money= itGs 8%at t%ey o#ten 8ent into
business #or in t%e #irst place.
Since money is a <ey #actor9 ma<ing t%em a8are o# employee turnover costs may
%elp.
1. "e certain all o# your supervisors an$ managers <no8 %o8 muc% employee
turnover costs. 3%ey o#ten assume employee turnover is O*ust a cost o# $oing
business.O 1t isnGt.
7(
2. ommunicate t%at ot%er goo$ or %ig%/per#orming employees notice suc%
be%aviors an$ may $eci$e to leave even i# t%eyGve been 8ell/treate$. alculate
t%e turnover costs #or replacing t%ese employees9 an$ communicate it.
3. Set up a ne8 8or<ing agreement 8it% t%em9 a$$ing t%e use o# goo$ retention
an$ employee relations s<ills to t%eir *ob $escriptions9 an$ basing at least 2,Q
to 33Q o# t%eir bonuses on goo$ employee retention.
(. "e able to imme$iately o##er t%em coac%ing 8it% a truste$ internal or external
#acilitator. &aving a solution in %an$ $emonstrates t%at t%e organi;ation cares
about t%em9 an$ is #ocuse$ on ma<ing #uture improvements9 not on blame.
ompeting 8it% ot%er employers #or goo$ employees is $i##icult enoug%= eliminate
internal causes #or employee turnover in your organi;ation.
Remember6 since most o# t%e reasons goo$ employees leave are t%ings employers can
$o somet%ing about9 t%is ma<es employee turnover an insi$e *ob more o#ten t%an not.
)%at %appene$ to t%e a$vertising agencyK
7any o# t%e most talente$ pro#essionals in t%e area re#use$ to consi$er 8or<ing t%ere9
an$ it %a$ to merge 8it% several ot%er agencies9 giving t%e abusive boss several ne8
an$ $eman$ing partners to $eal 8it%.
!d !gencies: 4 5ol#tions for 1iring6 Training and 'etention
The average Starbucks barista gets more training than the average
communications employee. Andrew Bennett
Accor$ing to a recent (A2s an$ Arnol$ )orl$8i$e Survey6
+0Q o# agency sta## say t%ey %ave to #igure t%ings out on t%eir o8n $ue to t%e lac< o#
training an$ ,0Q o# talent in t%e mar<eting an$ communications in$ustry #eel
un$ertraine$ an$ 8it% no $e#inable career pat%.
7,
3%e survey #oun$ t%at agencies are losing employees because t%ey see little career
pat%ing9 #eel t%ey2re learning on t%e *ob an$ #in$ ne8 employers t%at invest more in
training.
Andre< BennettF >%o0a% CEO of Arno%d @or%d<ide9 #urt%er reports on t%is
lan$mar< (A2s stu$y on %iring9 $evelopment an$ retention at t%e (As 3rans#ormation
2011 con#erence6
The 7ro0%e' D accordin to the recent "AHs and Arno%d sur+ey on hirinF
de+e%op'ent and retention of aency e=ecuti+es6
30Q o# t%e collective agency 8or<#orce 8ill be gone 8it%in 12 mont%s
70Q o# employees 8oul$ call a recruiter bac< i# one reac%e$ out to t%em
+-Q o# employees surveye$ sai$ t%ey #eel t%ey coul$ easily get a *ob9 in part
because o# t%e improving economy
37Q expect to stay one to #ive more years in t%e in$ustry9 --Q plan on staying
more t%an #ive years in t%e business
+0Q o# employees sai$ t%ey learne$ by #iguring out problems on t%eir o8n.
onversely9 2,Q o# execs sai$ employees #igure$ out t%eir o8n issues
The So%ution - BenettHs & so%utions to turn e'p%oyee attitudes around6
1. In+est in talent in t%e early stages9 suc% as sc%ools
2. 7ro'ote cross training
3. Introduce ne8 incentives9 suc% as e$ucation #inancing or sabbaticals
(. Fi= per#ormance management
,. Enae employees in t%e career conversation
T"e /"anging 'ole of !d !gency 'ainmakers
An interesting A5)EE0 article regar$ing t%e D%anging Role o# Rainma<ersE.
Su##ice to say t%at 8it% a ma*or para$igm s%i#t #or %o8 a$ agency ne8 business is
acAuire$ it also signi#icantly impacts t%e role #or t%ose 8it% t%e responsibility #or
business $evelopment.
7-
Agency lea$ers say t%at t%e *ob %as become more complex an$ t%ere#ore more
$i##icult to cast. As a result9 searc%es #or ne8 business talent ta<es longer.
Its just suc a ard !"siti"n t" #i$$%& sai$ 7ic%ael Wuna9 @e8 Lor< managing
$irector at 'ublicis Froupe2s Saatc%i ! Saatc%i9 8%ose ne8 7.9 "en*amin "ittman9
starte$ last 8ee<. 'e (ad (en)rainma*er days + tat d"esnt a!!en anym"re,
Its a t"ug j"-,&
@hyA These are so'e of the reasons i+en6
"ecause client revie8s in recent years %ave generally become more
complicate$9 given t%e expan$ing mar<eting nee$s o# clients
3%e more common presence o# searc% consultants
R4'/$riven processes
'articipation o# procurement executives
Agencies generally are reinventing t%emselves #or t%e $igital age an$ %o8
t%ey mar<et t%at to prospective clients an$ consultants %as c%ange$.
There are not a whole lot of people who have done this job in the
past who know how to do it well now,
Avi 5an9 a #ormer ne8 business executive at Euro RSF9 "erlin ameron Jnite$ an$
Saatc%i 8%o2s no8 presi$ent o# 5arling in @e8 Lor<.
3%e agencies mentione$ in t%is article are t%e large agencies. Barge agencies acAuire
ne8 business $i##erently t%an small/to mi$/si;e s%ops. "ut 1 %ave no $oubt small to
mi$/si;e$ agencies ne8 business $evelopment must c%ange as 8ell.
.it "/er 500 "# c$ient re$ati"nsi!s $asting $ess tan t1" years and te a/erage
2(3 tenure 27 m"nts% te r"$e "# ne1 -usiness at "ur agencies is m"re im!"rtant
and a -igger #"cus tan e/er,
4eind te c$"sed d""rs "# e/ery s"! tere is a !ers"n "r gr"u! "# !e"!$e 1"se
/ery j"-s are t" #"cus "n te gr"1t "# te agencys re!utati"n% c$ient -ase and s*i$$
set% n"t t" menti"n re/enue, 0#t do yo# "ave t"e rig"t person7s8 in place to
s#ccessf#lly carry o#t yo#r own agency marketing plans9 & @oelle )eaver9
A$vertising Age2s Small Agency 5iary.
77
&aving a 8or<ing <no8le$ge o# social me$ia isn2t even an option any longer #or an
agency2s ne8 business $irector. Social me$ia is %aving a big impact on %o8 agency2s
promote t%emselves an$ %o8 t%ey are #oun$ online by t%eir prospective client
au$iences.
Bere are " <ays socia% 'edia i'pacts ad aency ne< 0usiness6
1. A paradi' shift for ho< ne< 0usiness is acMuired. Accor$ing to a recent
7. survey9 80Q o# $ecision ma<ers say t%ey #oun$ t%e ven$or9 not t%e ot%er
8ay aroun$.
2. SEO is no< a critica% part of ne< 0usiness stratey; Accor$ing to
7ar<eting S%erpa9 80/+0Q o# business to business transactions begin 8it% a
searc% on t%e 8eb.
3. An aency 0%o is a necessary co'ponent for 'ar?etin your aency; As
necessary as it 8as #or an agency to %ave a )ebsite9 it is no8 as relevant #or
t%em to %ave a blog. 1t becomes t%e gate8ay to t%e agency an$ puts a #ace to
it.
(. The ro<th of ne< 'edia 'andates aencies participation; Social me$ia is
no8 mainstream9 your agency2s cre$ibility is suspect i# it isn2t 8al<ing t%e
8al<9 not *ust tal<ing t%e tal<.
So be#ore %iring someone responsible #or your agency2s ne8 business e##orts9 in
a$$ition to t%e Auestions regar$ing t%eir ne8 business expertise9 t%in< about as<ing
some a$$itional Auestions li<e t%ese. &o8 t%ey ans8er 8ill tell you 8%at t%ey really
<no8 about social me$ia.
5o you rea$ blogsK )%ic% onesK
5o you %ave a personal blogK )%at2s it aboutK
)%at are t%e social net8or<s $o you participate inK
&ave you ever uploa$e$ a vi$eo onlineK )%at program $i$ you use to $o itK
"esi$es ma<ing p%one callsT%o8 else $o you use your mobile p%oneK
&ave you ever registere$ a $omain nameK
5o you use social boo<mar<s or taggingK
5o you use a #ee$ rea$er o# some sortK )%ic% oneK )%yK
&o8 $o you use 38itterK
78
5o you %ave a 4aceboo< pageK Bin<e$1nK
)%at you are loo<ing #or is !artici!ati"n% e5!erience and credi-i$ity in s"cia$ media.
Attrition #ates In India
1n$ia %as 8itnesse$ a constant gro8t% in t%e "'. sector an$ t%is sector %as
contribute$ consistently to t%e gro8t% o# 1n$ian Economy. 3%e 1n$ian outsourcing
in$ustry %as its s%are in global outsourcing #rom ,,Q in 2010 to ,8Q in 2011. 3%e
aggregate revenues o# 1n$ian 13/"'. in$ustry is set to touc% JS5 100 billion in 2012
an$ exclu$ing %ar$8are it is expecte$ to touc% JS5 88 billion.
7+
.ne anot%er interesting aspect being 8itnesse$ in t%is sector is t%e saturation o# tier/1
cities an$ t%e gro8t% o# tier/11 an$ tier/111 cities. As t%ese cities start contributing more
to t%e outsourcing sector9 t%e nee$ #or traine$ manpo8er 8ill also go up. 1t is expecte$
t%at outsourcing in$ustry 8oul$ be employing nearly 2.8 million people in 2012
$irectly an$ 8.+ million people in$irectly. Accor$ing to a stu$y by @ASS.79 3ier/
11 cities 8oul$ account #or nearly 3 million "'. *obs by 2018.
3%e "'. service provi$ers t%oug% continue to expan$ to o##s%ore locations9 t%ey are
also increasingly loo<ing at tier/11 an$ tier/111 cities so as to tap t%e local talent. 1n a
state li<e 0arnata<a9 a 3ier/11 city li<e 7ysore an$ 3ier/111 city li<e S%imoga %as been
contributing immensely to t%is sector. 1n$ia is <no8n as an outsourcing $estination
mainly because o# its competitive cost proposition. 3%e service provi$ers are moving
to t%ese cities to leverage on t%is cost aspect an$ to neutrali;e t%e c%allenge o# %ig%
attrition. 3%e service provi$ers are using $i##erent mo$els to enter into tier/11 an$ tier/
111 cities. 4or example9 1n#osys %as tie$ up 8it% t8o "angalore base$ companies an$
8or<ing t%roug% t%em to #oray into t%ese cities.
As t%e service provi$ers move to 3ier/11 an$ 3ier/111 cities9 t%e main c%allenge t%at
t%ey are #acing is t%e lac< o# s<ille$ manpo8er. 3o a$$ress t%is issue an$ to give a
ne8 #illip to t%e gro8t% o# "'. in t%ese states t%e "'. Association o# 1n$ia along
8it% )orl$ "'. 4orum is planning to train people in 3ier/11 an$ 3ier/111 cities. 3%ey
are planning to give s<ills training in cities li<e
3rivan$rum
Haipur
Ranc%i
'atna
Agra9 etc

"%aratico 1n#ome$ia Bt$ as part o# its strategy to move to tier/11 an$ tier/111 cities is
setting up a (000 seater #acility in Sa%ibaba$. As part o# t%e initiative o# "'.
association an$ )orl$ "'. #orum in provi$ing s<ills training9 "%aratico is setting up
a training aca$emy in Sa%ibaba$. 3%is 8ill %elp t%em to %ave a #ee$er system #or its
propose$ ne8 #acility. 3%is #orum %as also tie$ up 8it% Jniversity o# Ra*ast%an to
80
give specialise$ s<ills training to 2,00 stu$ents o# t%e Jniversity #or "'. sector.
3%ese stu$ents 8ill be given placement assistance so as to get employe$ in 7a%in$ra
)orl$ ity in Ra*ast%an.
1t is 8i$ely believe$ t%at t%ere is enoug% talent in tier/11 an$ tier/111 cities an$ 8%at is
nee$e$ is proper grooming. As t%e clients are not bot%ere$ about 8%et%er an agent is
sitting in a tier/1 city or tier/11 city as #ar as t%e Auality is not compromise$9 it ma<es
better sense #or "'. #irms to loo< #or greener pastures in t%ese tier/11 an$ tier/111
cities.
3%e in#ormation tec%nology >13? an$ %ealt%care sectors are 8itnessing t%e %ig%est
attrition rates among talente$ employees9 ma<ing retention o# critical manpo8er
resources a <ey c%allenge9 says a survey.
Accor$ing to a stu$y con$ucte$ by $yBirinC%u0;co'9 t%e 13 an$ 13ES sectors sa8
t%e %ig%est attrition rate o# 23 per cent in t%e #irst Auarter o# 2010/11.
1n contrast9 t%e ban<ing an$ #inancial services sector 8itnesse$ an attrition rate o# 18
per cent9 #ollo8e$ by %ealt%care >12 per cent?9 47F >11 per cent? an$ automobiles
an$ manu#acturing >11 per cent?.
OAttrition is a ma*or problem 8it% 1n$ia 1nc an$ it su$$enly got increase$ in t%e #irst
Auarter o# t%e current #iscal year. 3%e ma*or reason be%in$ >t%is? 8as t%at #irms %a$
starte$ paying more to ne8ly %ire$ employees.
O"esi$e pay pac<ages9 career level gro8t% an$ relations%ips 8it% supervisors are t%e
ot%er reasons #or %ig%er *ob attrition9O 7y&iringlub.com 4oun$er an$ E. Ra*es%
0umar sai$.
3%e main reason #or s8itc%ing a *ob is pay pac<ages >21 per cent?9 #ollo8e$ by career
level gro8t% >1- per cent?9 $issatis#action 8it% supervisors >1, per cent? an$ 8or<
pressure >1( per cent?.
81
Employees 8it% experience o# up to #ive years %a$ t%e %ig%est attrition rate o# 3+ per
cent9 8%ile it 8as 27 per cent #or t%ose 8it% ,/10 years o# experience an$ 22 per cent
in t%e 10/1, yearsG experience brac<et.
1nterestingly9 senior/level employees >experience more t%an 1, years? %a$ a very lo8
attrition rate o# 1, per cent.
OEntry level an$ young bloo$ employees 8ant to reac% on %ig%er pay pac<ages as
soon as possible to #ul#ill t%ere nee$ an$ avail goo$ #acilities o# li#e.
O1# t%ey continue 8it% t%e same *ob9 t%ey can get a 10/20 per cent salary %i<e9 but i#
t%ey s8itc% *obs9 t%ey can easily get some8%ere aroun$ a 2,/(0 per cent salary %i<e
#rom current 3. A %ig%er attrition rate causes panic among employers an$ t%e
$irect impact o# a %ig%er attrition rate comes in %iring costs9O 0umar a$$e$.
3%e survey 8as con$ucte$ by 7y&iringlub // an Asia an$ Ful#I7i$$le East
recruitment ten$ering plat#orm // among 119800 employees an$ 2(+ employers
bet8een 7ay an$ Hune t%is year.
1n Asia9 organi;ations #ace$ an overall attrition rate o# 1-Q in 200,. Attrition rate 8as
1(Q in 200( an$ 10Q in 2003.
Accor$ing to &e8itt2s Attrition an$ Retention Stu$y Asia 'aci#ic 200-9 t%e no.1
reason #or t%is gro8ing attrition rate is compensation un#airness. 21Q o# t%e
organi;ations 8%o too< part in t%e survey sai$ t%at t%eir employee le#t t%e
organi;ation because t%ey got o##ers #rom ot%er organi;ations o##ering better pay
pac<ages. 3%e no. 2 reason 8as less gro8t% opportunities an$ no. 3 reason 8as role
stagnation.
3%e stu$y also reveale$ t%at t%e top employee retention strategy being use$ by t%e
organi;ations in Asia 8as to pay above t%e in$ustry stan$ar$s9 provi$ing opportunities
to employees to learn ne8 s<ills9 an$ provi$e 8or< li#e balance.
Fro' e'p%oyee point of +ie<
82

Accor$ing to t%e employees9 attrition at t%e pro#essionalIsupervisorItec%nical level
8as t%e %ig%est >3+Q? an$ lo8est at t%e seniorItop management level >1Q
approximately?.
3%e attrition rate %as al8ays been a sensitive issue #or all organi;ations. alculating
employee turnover rate is not t%at simple as it seems to be. @o common #ormula can
be use$ by all t%e organi;ations. A #ormula %a$ to be $evise$ <eeping in vie8 t%e
nature o# t%e business an$ $i##erent *ob #unctions. 7oreover9 calculating attrition rate
is not only about $evising a mat%ematical #ormula. 1t also %as to ta<e into account t%e
root o# t%e problem by going bac< to t%e %iring stage.
3%ere is no stan$ar$ #ormula to calculate t%e attrition rate o# a company. 3%is is
because o# certain #actors as6
3%e employee base c%anges eac% mont%. So i# a company %as 19000
employees in April 200( an$ 29000 in 7arc% 200,9 t%en t%ey may ta<e t%eir
base as 29000 or as 19,00 >average #or t%e year?. 1# t%e number o# employees
83
8%o le#t is 3009 t%en t%e attrition #igure coul$ be 1, percent or 20 percent
$epen$ing on 8%at base you ta<e.
7any #irms may not inclu$e attrition o# #res%ers 8%o leave because o# %ig%er
stu$ies or 8it%in t%ree mont%s o# *oining.
1n some cases9 attrition o# poor per#ormers may also not be treate$ as attrition.
alculating attrition rate6
Attrition rates can be calculate$ using a simple #ormula6
Attrition S9No; of e'p%oyees <ho %eft in the year * a+erae e'p%oyees in the year: = 1//
3%us9 i# t%e company %a$ 19000 employees in April 200(9 29000 in 7arc% 200,9 an$
300 Auit in t%e year9 t%en t%e average employee strengt% is 19,00 an$ attrition is 100 x
>300I1,00? X 20 percent. "esi$es t%is9 t%ere are various ot%er types o# attrition t%at
s%oul$ be ta<en into account.
3%ese are6
4res%er attrition t%at tells t%e number o# #res%er2s 8%o le#t t%e organi;ation
8it%in one year. 1t tells %o8 many are using t%e company as a springboar$ or a
launc% pa$.
1n#ant mortality t%at is t%e percentage o# people 8%o le#t t%e organi;ation
8it%in one year. 3%is in$icates t%e ease 8it% 8%ic% people a$apt to t%e
company.
ritical resource attrition 8%ic% tell t%e attrition in terms o# <ey personnel li<e
senior executives leaving t%e organi;ation.
Bo8 per#ormance attrition6 1t tells t%e attrition o# t%ose 8%o le#t $ue to poor
per#ormance.
Attrition Costs
.ne o# t%e best met%o$s #or calculating t%e cost o# turnover ta<es into account
expenses involve$ to replace an employee leaving an organi;ation. 3%ese expenses
8(
are6
A; #ecruit'ent cost
3%e cost to t%e business 8%en %iring ne8 employees inclu$es t%e #ollo8ing six
#actors plus 10 percent #or inci$entals suc% as bac<groun$ screening6
3ime spent on sourcing replacement
3ime spent on recruitment an$ selection
3ravel expenses9 i# any
Re/location costs9 i# any n 3rainingIramp/up time
"ac<groun$Ire#erence screening
B; Trainin and de+e%op'ent cost
3o estimate t%e cost o# training an$ $eveloping ne8 employees9 cost o# ne8 %ires
must be ta<en into consi$eration. 3%is 8ill mean $irect an$ in$irect costs9 an$ can be
largely classi#ie$ un$er t%e #ollo8ing %ea$s6
3raining materials
3ec%nology
Employee bene#its
3rainers2 3ime
C; Ad'inistration cost
3%ey inclu$e6
Set up communication systems
A$$ employees to t%e &R system
Set up t%e ne8 %ire2s 8or<space
Set up 15/car$s9 access car$s9 etc.
3%ere are varie$ reasons #or t%e same an$ t%e ma*or reasons #or attrition rate
are>base$ on #e8 sample stu$y?6/
8,
P 7oney / 10Q
P @ig%t s%i#ts / 3,Q
P 7onotonousIboring *ob M 30Q
P .t%ers / 2,Q
Study Suests E'p%oyees Lea+e BossesF
Not 5o0s
8-

are#ul selection o# employees an$ managers can %ave a %uge impact on your
employee retention e##orts an$ employee turnover costs at your organi;ation.
1t %as been sai$ more t%an once9 an$ #or goo$ reason9 t%at employees leave t%eir
bosses / not t%eir *obs. A 4lori$a State Jniversity stu$y sc%e$ule$ #or #ull release in
t%e 4all 2007 issue o# Bea$ers%ip Vuarterly con#irms t%is. 3%e stu$y s%o8s t%at (0Q
o# employees 8or< #or ba$ bosses base$ on survey results. 3%e reasons t%at
employers score poorly are varie$ an$ many6
P 3+Q o# 8or<ers sai$ t%eir supervisor #aile$ to <eep promises.
P 37Q in$icate$ t%eir supervisor #aile$ to give cre$it 8%en $ue.
P 31Q sai$ t%eir supervisor gave t%em t%e Osilent treatmentO $uring t%e past year.
P 27Q report t%eir supervisor ma$e negative comments about t%em to ot%er employees
or managers.
P 2(Q in$icate$ t%eir boss inva$e$ t%eir privacy.
P 23Q sai$ t%eir supervisor blame$ ot%er to cover up personal mista<es or minimi;e
embarrassment.
So 8%at $oes t%is all boil $o8n toK 3%e e##ects o# %aving ba$ bosses in your
organi;ation can be $evastating. &ig% turnover9 poor employee morale9 employee
t%e#t9 $iminis%e$ customer service9 substan$ar$ employee per#ormance9 lo8er
pro$uction9 an$ an organi;ational culture o# #ear an$ mistrust can all be blame$ in part
on poor bosses an$ managers.
3%e costs o# %aving poor managers an$ bosses can be incre$ible. onsi$er t%e cost o#
employee turnover9 8%ic% is $i##erent #or all in$ustries an$ positions9 but %as been
roug%ly estimate$ at N1,9000 / N179000 per employee in lo8 to mo$erately s<ille$
87
positions. &aving a manager 8%o $rives potentially valuable employees #rom your
organi;ation can %ave a %uge impact on your bottom line9 an$ your customers.
The Bad Boss 3irus
Freat people stay in ba$ *obs 8it% great bosses.
Freat people leave great *obs 8it% ba$ bosses.
$ost effecti+e retention initiati+es are as fo%%o<s
9each eneration %isted 0y priority ran?:6
88
2eterans 7over age :48
1. A$$itional bonuses or #inancial incentives >2,Q?
2. A$$itional bene#its >%ealt% an$ pensions? >2(Q?
3. 4lexible 8or< arrangements >20Q? / orporate social responsibility >20Q?
0aby 0oomers 7ages ;4.:;8
1. A$$itional bene#its >%ealt% an$ pensions? >2-Q?
2. A$$itional bonuses or #inancial incentives >23Q?
3. A$$itional compensation >21Q? M Strong lea$ers%ipIorgani;ational support
>21Q?
<eneration = 7ages >?.;;8
1. A$$itional bonuses or #inancial incentives >21Q?
2. A$$itional compensation >1+Q? M Strong lea$ers%ipIorgani;ational support
>1+Q?
3. ustomi;e$Iin$ivi$uali;e$ career planning >18Q? M Succession planning
>18Q?
<eneration , 7#nder age >?8
1. ompany culture >21Q?
2. 4lexible 8or< arrangements >20Q?
3. @e8 training programs >1+Q? / Support an$ recognition #rom supervisors or
managers >1+Q?
5OB TEN2#E AC#OSS 8IFFE#ENT
IN82ST#4 SECTO#S6

8+
E'p%oyee 7erceptions for Lea+in and E'p%oyeesH
actua% reason for %ea+in
@hen do e'p%oyees %ea+eA
3%e top 3 reasons #or employees leaving are6
1; Lac? of opportunities for persona% and career de+e%op'ent
2; Issues <ith <or?in e=perience
+0
3; Sa%ary ( 0enefits
C%osin6
Retention e##orts are usually starte$ only 8%en turnover %as become an issue. Since
8e <no8 it ta<es more money to replace an employee t%an to retain an employee9
retention planning an$ programmes nee$ to be proactive. ompanies t%at un$erstan$
t%e importance o# employee retention %ave a competitive a$vantage.
IN8IAN SCENA#IO OF C2##ENT
E$7LO4EE #ETENTION
+1
OBSE#3ATIONS AN8 FIN8IN>S
1s your ompany 4acing t%e problem o# attritionK Since %o8 longK
A? Les9 but t%e problem o# attrition becomes serious #rom last 3 years.
)%at2s your organi;ation attrition rateK
A? 1ts 1,Q
&ave you $one employee satis#action surveyK )%at are t%e #in$ingsK
A? Les9 8e #oun$ t%at our employees are %appy 8it% t%e company
Accor$ing to your survey 8%at are t%e reasons #or attritionK
A? ompetitors9 better salaries9
&o8 $o u cope 8it% attritionK
A? "y provi$ing 3raining9 personal $evelopment.
)%at are your retention strategiesK
A? Re8ar$ ! Recognition
)%at is your company success rate in retaining employeesK
A? 1ts goo$9 80Q
)%at are t%e &R suggestions to 3op 7anagement to re$uce attritionK
A? Foo$ 3raining alen$ar9 salary rise as per mar<et stan$ar$s9 better career
gro8t%9 %ealt%y environment at 8or< place
)%at are t%e steps ta<en by Jr top management to re$uce attritionK
A? Foo$ 3raining alen$ar9 salary rise as per mar<et stan$ar$s9 better career
gro8t%9 %ealt%y environment at 8or< place
)%at are t%e $i##iculties you #ace to retain your employeesK
A? &ig% salaries o# competitors9 un%ealt%y competition
5oes t%e company #ace 8it% t%e problem o# poac%ingK
A? @ot muc%9 8e %ave policies to re$uce poac%ing
&o8 $oes u motivate your employeesK
A? )it% oncept better gro8t%9 personal $evelopment t%roug% training
+2
)%ic% level o# t%e organi;ational %ierarc%y results in leaving t%eir *obs $ue to
various reasonsKK
A? 7i$$le Bevel
)%at is your company2s attrition rateK
)%ic% met%o$ o# calculating employee turnover $o u useK
A? @o o# t%e employees in t%e beginning o# yearI no o# employees in t%e
closing yearY100
A#ter various initiatives t%at t%e company %as use$9 $o you t%in< t%at t%e
attrition rate %as come $o8nK
A? Les9 i# you ta<e correct steps9 you can re$uce t%e attrition.
Any inci$ent u 8oul$ li<e to s%are concerne$ 8it% retentionK
A? Les9 8e convince$ senior employee to ta<e bac< %is resignation
)%o is t%e one 8%o %as t%e responsibility to retain t%e employeeK 1S t%at t%e
&r manager or some ot%erK
A? "ot% &R an$ concerne$ "usiness &ea$
1s t%ere a $i##erent sub $ept in &R #or retentionK
A? As suc% 8e $on2t %ave
)%at is your company $oing to improve retentionK
A? areer 5evelopment9 Re8ar$ ! Recognition9
)%ic% employee bene#its are provi$e$ by ma*ority o# t%e bpo companiesK
A? @ig%t S%i#t allo8ances9 conveyance allo8ances9 #oo$ coupons9 incentives.
transportation
+3
CHAPTER "
CONCLUSION
+(
CONCL2SION6
As to t%e customer9 t%e employee serving t%em is t%e company9 similarly to t%e
employee9 t%e manager is t%e employer.
Retaining t%e employees especially your best ones reAuire more t%an Foo$ies
an$ Fimmic<s.
1t reAuires un$erstan$ing t%eir nee$s 8%ic% can $rive satis#action an$ %ig%
per#ormance in t%em9 an$ t%en use %is <no8le$ge to create an intrinsically
motivating 8or< experience9 by $oing t%is organi;ation can become 8%at 8e
say in true 8or$s 9 Retention 8ort%y.
3%e &R pro#essionals in "'.s are nee$e$ to be #lexible in t%eir approac% o#
$eveloping9 motivating an$ retaining t%eir talent pool. ER7>Employee
Relations%ip 7anagement? in "'. s%oul$ be base$ on employee #ee$bac<
+,
receive$ t%roug% employee surveys A "'. s%oul$ implement t%e rig%t mix o#
t%ree Rs t%at 8ill create a %ar$/to leave 8or<place. 3%e "'. management
s%oul$ s<ill#ully communicate "'. policies to t%eir employee.
CHAPTER #
APPENDICES
+-
N2ESTIONNAI#E ON E$7LO4EE #ETENTION ST#ATE>IES6
Ae6TTTTTTTTT; >ender6 a? 7ale b? 4emale
1?. 5o you t%in< t%at employee retention %elps t%e $evelopment o# organi;ationK
a? @ever b? Sometimes c? 7ost o# t%e times $? All t%e times
2. 5oes your company pay more attention to incentives an$ per<s o##ere$ to youK
a? Les b? @o
3. Lou are encourage$ to participate in training to improve your s<ills an$
ompetenciesK
a? Les b? @o
"; 5o you get t%e recognition t%at you $eserve #or your per#ormanceK
a? Les b? @o
,. )%at is your opinion regar$ing t%e 8or< loa$K
a? :ery %ig% b? &ig% c? Average $? Bo8 e? :ery lo8
-. )oul$ you li<e to plan your #urt%er career in t%is organi;ationK
a? Les b? @o
7. &ave you ever suggeste$I8ill you suggest your #rien$sIrelatives to *oin t%is
organi;ationK
a? Les b? @o
+7
-. 5o you t%in< t%at t%e implementation o# t%ree R2s >recognition9 re8ar$9 respect?
8ill increase employee retentionK
a? @ever b? sometimes c? most o# t%e times $? all t%e time
Indicate the e=tent to <hich each of the fo%%o<in state'ents you aree in your
orani!ation usin the fi+e point sca%e 0y 'ar?in a tic? 'ar? UVW
+. 5oes your management come #or8ar$ to support 8%en you are #acing 8it% critical
situation
a? Strongly 5isagree b? 5isagree c? @eutral $? Agree $? Strongly Agree
1/; )or</li#e balance is supporte$ by t%is organi;ation.
a? Strongly 5isagree b? 5isagree c? @eutral $? Agree $? Strongly Agree
11; Lour training program is al8ays lin<e$ 8it% your career $evelopmentIgro8t%.
a? Strongly 5isagree b? 5isagree c? @eutral $? Agree $? Strongly Agree
12; .rgani;ation treating you in a respect#ul 8ay.
a? Strongly 5isagree b? 5isagree c? @eutral $? Agree $? Strongly Agree
13. 3%ere are no barriers o# communication 8%ile you are communicating 8it% your
superior
a? Strongly 5isagree b? 5isagree c? @eutral $? Agree $? Strongly Agree
1"; 5o you agree t%at you are re8ar$e$ perio$ically #or your per#ormanceK
a? Strongly 5isagree b? 5isagree c? @eutral $? Agree $? Strongly Agree
1,. 5o you agree t%at employee retention is plays a vital role in t%e result o#
pro$uctivityK
a? Strongly 5isagree b? 5isagree c? @eutral $? Agree $? Strongly Agree
Indicate the e=tent to <hich each of the fo%%o<in state'ents you satisfy in your
orani!ation usin the fi+e point sca%e 0y 'ar?in a tic? 'ar? UVW aainst that
co%u'n;
1&; )%at $o you #eel about t%e 8or<ing environmentK
a? &ig%ly 5issatis#ie$ b? 5issatis#ie$ c? @eutral? $? Satis#ie$ $? &ig%ly Satis#ie$
1-. )%at is your opinion about t%e company rules an$ regulationK
a? &ig%ly 5issatis#ie$ b? 5issatis#ie$ c? @eutral? $? Satis#ie$ $? &ig%ly Satis#ie$
1,; 1nterpersonal relations%ips are encouraging in t%is organi;ation.
a? &ig%ly 5issatis#ie$ b? 5issatis#ie$ c? @eutral? $? Satis#ie$ $? &ig%ly Satis#ie$
1-; 3%e *ob you are per#orming is satis#actoryK
a? &ig%ly 5issatis#ie$ b? 5issatis#ie$ c? @eutral? $? Satis#ie$ $? &ig%ly Satis#ie$
2/; &o8 is your relations%ip bet8een your superiorsK
+8
a? &ig%ly 5issatis#ie$ b? 5issatis#ie$ c? @eutral? $? Satis#ie$ $? &ig%ly Satis#ie$
21. Express your level o# satis#action regar$ing t%e 8el#are measures provi$e$ by
t%e ompany.
a? &ig%ly 5issatis#ie$ b? 5issatis#ie$ c? @eutral? $? Satis#ie$ $? &ig%ly Satis#ie$
22. 3ell your opinion about ma*or reasons #or employees leaving >Lou can name more
t%an one?
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
23; )%at inspires you . 7ost in your organi;ationK>Lou can name more
t%an one?
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
2"; &ave you 8or<e$ in any ot%er organi;ation previous to t%is companyK
[ \ Les [ \ @o
1# yes9 #or 8%at reason you s%i#te$ to t%is companyK
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
2,. 3%e a8ar$s I re8ar$s you receive$ in t%is organi;ation6
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
2-. Any Suestions6 ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
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CHAPTER 1$
BIBLIOGRAPHY
100
@EBSITES6
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888.gee<sgee;ersgoogli;ation.com
888.retention.nau<ri%ub.com
888.statcan.ca
888.timeso#in$ia.in$iatimes.com
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BOOES6
&uman Resource 7anagement .".7emoria
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Hournals9 @e8spaper an$ 1nternet
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Researc% 7et%o$ology9 )is%8a 'ra<as%an 'ublis%es9 an$ secon$ e$ition 2002.
acanas9 Woe. 'e 3##s"ring 2ra6e: .at t" 'in* 7-"ut 4e#"re 8"u 9um!,&
&uman Resources 7anagement 1nternational 5igest 13 >7arc% 200,?6 3-M38.
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