A Study of Employee Retention in Wipro

A SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TO OSMANIA UNIVERSITY, HYDERABAD.

Aathira Jayaraj

A Study of Employee Retention in Wipro A PROJECT REPORT ON A STUDY OF EMPLOYEE RETENTION IN WIPRO

A SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TO OSMANIA UNIVERSITY, HYDERABAD.

IN PARTIAL FULFILLMENT OF THE SUMMER INTERNSHIP PROGRAMME OF B.COM HONOURS IIIrd YEAR

BY AATHIRA JAYARAJ 128-08-01811

AURORAS DEGREE & PG COLLEGE (AFFILIATED TO OSMANIA UNIVERSITY) CHIKKADPALLY, HYDERABAD 500 020.

A Study of Employee Retention in Wipro

Certificate
This is to certify that the project work entitled

A STUDY OF EMPLOYEE RETENTION IN WIPRO

is the bonafide work done by

Aathira Jayaraj 128-08-01811

as a part of their curriculum in the Department of Commerce

Auroras Degree & PG College, Chikkadpally, Hyderabad-20.

This work has been carried out under my guidance

Dr. Ravi Paturi Principal

Course Coordinator

Head of Dept.

External Examiner

Auroras Degree & PG College, Chikkadpally, Hyderabad-20.

A Study of Employee Retention in Wipro

DECLARATION

This is to inform that I, Aathira Jayaraj of B.Com (Hons) III have completed my project work titled A Study of Employee Retention in Wipro in the year 2009-2010. I have completed my project under the guidance of Ms. Prasannakumari B., Faculty of Department of Commerce, Auroras Degree College, Chikkadpally, Hyderabad.

I hereby declare that this project report submitted by me to Osmania University, Hyderabad, is an original work done as part of our academic course and has not been submitted to any other University or Institution for the award of any degree or diploma.

Aathira Jayaraj 128-08-01811

A Study of Employee Retention in Wipro

TO WHOMSOEVER IT MAY CONCERN

I certify that Aathira Jayaraj of B.Com Honours IIIrd Year bearing Roll No. 128-08-01811 has done the project titled A Study of Employee Retention in Wipro under my guidance.

PRASANNAKUMARI B. Commerce Faculty (Internal Guide)

A Study of Employee Retention in Wipro

ACKNOWLEDGEMENT
I express my sincere gratitude to the staff and management of Auroras Degree College for giving me an opportunity to undertake this project work.

It is my pleasant duty to express my profound gratitude and extreme regards to my mentor Ms. Prasanakumari B. without whos learned and able guidance and encouragement, this work would not have been completed.

It is also my duty to thank in this regard Ms. Brinda Satish and Ms. Babita Naik who instilled the curiosity in me which helped me perform better.

I would also like to thank my project External Mentor Ms. Juri Wagh and her staff for their cooperation in completion of my project in the required time.

Its an honor to thank Principal Dr. Ravi Paturi and Vice Principal & Head of Department Mr. Viswanadham Bulusu who has given me this opportunity.

Im also thankful to all my family members, classmates and friends who helped me in carrying out this project.

Name Roll No

: Aathira Jayaraj : 128-08-01811

A Study of Employee Retention in Wipro

Chapter Contents
CHAPTER I - INTRODUCTION Introduction Changing Role of HR Retention Management Need for the Study Wipro Technologies A Company Profile Reasons for Choosing Wipro Review of Literature Objectives of the Study Hypothesis Methodology Sample Techniques of Analysis Sources of Data Period of the Study Scope of the Study Chapterisation Limitations of the Study : : : : : : : : : : : : : : : : : : 1 1 2 4 7 8 10 10 15 15 16 16 16 16 17 17 17 18 19 19 21 22 24 27 27 28 31 32 33 34

CHAPTER II TALENT MANAGEMENT IN IT SECTOR : IT Sector in India Talent Management: A pressing problem Employee Attrition Attrition rates in IT Sector Talent Management Strategies in IT Sector Workforce Retention and Motivation Compensation and Reward Career Growth Good Environment Being the best place to work with Upgradation of skills through retraining : : : : : : : : : : :

A Study of Employee Retention in Wipro Conclusion CHAPTER III FACTORS AFFTECTING EMPLOYEE RETENTION IN WIPRO Introduction Talent Management Strategies in Wipro Pay and Benefits Career Growth Learning and Development Good Environment Job Satisfaction : : : : : : : : 37 37 38 40 43 44 47 52 : 35

CHAPTER IV DATA ANALYSIS AND INTERPRETATION Introduction Methodology Respondent Profile Factors affecting Retention in IT Sector Factors affecting Retention in Wipro Pay and Benefits Career Growth Training and Development Work Environment Job Satisfaction CHAPTER V SUMMARY, CONCLUSIONS AND SUGGESTIONS Introduction Significance of the study Role of HR in Retention Need for the current Study Objectives of the study Hypothesis Methodology Sample : : : : : : : : : 70 70 71 72 73 73 73 73 74 : : : : : : : : : : 53 54 56 57 58 60 62 64 65 66 68

Preference given to different factors by two groups :

A Study of Employee Retention in Wipro Techniques of analysis Sources of data Period of Study Scope of the Study Chapterisation Findings from the study Conclusions Suggestions Limitations of the Study Areas for further research ANNEXURES Questionnaire BIBLIOGRAPHY : : : : : : : : : : : : : 74 74 75 75 75 76 79 80 81 81 82 82 84

A Study of Employee Retention in Wipro

Chapter 1 Introduction

A Study of Employee Retention in Wipro

Chapter 1 INTRODUCTION
This chapter being introductory presents the aspects planned for the study and the research efforts put in thereof. It covers the importance and need for human resource management in IT industry. The literature reviewed, the need for the study, the objectives, scope of the study, period of the study, methodology adopted, limitations of the study and chapterization are also included in this chapter. INTRODUCTION The most valued assets of an organization are the people who directly or indirectly contribute to achieving the various business objectives laid down by the organization. Human Resource Management is a very strategic approach to managing these most valued assets. No organization can function without the human resources as they form the basis of any organization. In the wide sense Human Resource Management means selecting and employing the right people for the right jobs, developing their resources by training and development to match the needs of the organization, utilizing their skills and maintaining them to benefit the organizational needs and also providing them compensation that matches their services and also the organizational requirement. The goal of Human Resource Management is to help the organization to attract and maintain the right talent, and manage them effectively and efficiently to meet the strategic organizational goals. In the words of Miller, a Human Resource Management approach seeks to ensure a fit between the management of an organizations employees, and the overall strategic direction of the company. The basic theory of Human Resource Management is that humans are not machines and therefore one needs a more critical examination at a workplace. In Human Resource Management, a number of fields come into

A Study of Employee Retention in Wipro play namely, psychology, organizational psychology, sociology, legal studies, industrial relations etc. Today, Human Resource functions are much beyond the basic administrative functions. They are now seen as reactive rather than proactive partners for the top level management. The Human Resource functions have now become revenue generating rather than just support functions. Human Resource Management includes several processes. These processes are generally undertaken by the Human Resource Department of the organization. These include: Planning the workforce Recruitment Skills Management Training and Development Payrolls Employee Benefits Performance Appraisals Time and Travel Management Personnel Cost Management

CHANGING ROLE OF HR HR has become a huge investment for medium and large companies across industries, with people-related costs averaging over 60 percent of total corporate expenditures. The leading firms have been taking steps to ensure that they extract maximum value from their HR investments, introducing models that go beyond basic HR functionality to embrace new ways of improving the quality, efficiency and productivity of their workforces. These businesses recognize that, to be fully effective, HR programs require new processes, supported by leading technologies.

A Study of Employee Retention in Wipro For these companies, the HR department, focusing predominantly on basic administrative, record-keeping and transactional duties, is a thing of the past. Businesses now realize that a strong foundation of information about individuals is a highly valuable organizational resource that can be used to drive efficiencies throughout the business. Of course, "People are our greatest asset" is a mantra that companies have been chanting for years. Yet it is only relatively recently that businesses have started putting HR systems in place that support this philosophy. As a result, the information that sits inside the HR department is being made available for effective use throughout the wider organization, helping companies align their workforces with long-term business objectives. The backdrop to the introduction of these new systems is the uncertain business conditions that followed the economic downturn. This situation has resulted in a relentless drive for cost control, which affects the HR department as much as any other. HR now has to demonstrate that it can develop and deliver programs as efficiently as possible, providing greater value at a lower cost. Yet with increased access to information on their employees, organizations can incorporate processes for leveraging worker skills across the enterprise, which in turn allows them to be more flexible. Firms with an in-depth view of employee competencies across regions or markets can immediately locate "best-fit" candidates, identify and resolve skill shortages, and re-allocate resources in response to changing conditions. In doing so, they often avoid expensive layoff/rehire cycles that sap morale, productivity, and profits. Better decision-making, significant employee benefits, increased efficiencies and reduced costs all create a compelling argument for implementing HRMS systems. For the HR department, these technologies provide the potential to break away from its administrative quagmire to become a front-line function embracing more strategic responsibilities that positively impact the success of the enterprise. Once time-intensive processes are streamlined, HR professionals are freed up to focus on achieving full workforce optimization, a key source of competitive advantage and, ultimately, profitability, as it means

A Study of Employee Retention in Wipro resources can be aligned with the company's business goals and used strategically RETENTION MANGEMENT Retention management is the latest and most pressing problem of the new Millennium. Each and every business in this economy has now become knowledge based. It has therefore become essential for the top management to preserve the dynamic repositories of learning, which are their employees. Today, businesses across all sectors, sizes and statures now use a variety of techniques and policies to retain their people. There is little that a company will not do to keep its people. Be it career counseling, conflict resolution programmes or even welfare management, companies are ready to go to any extent possible to retain their employees. In todays market, a manager who has innovative retention strategies to offer to the organization is the one who would be winning the war. People are the backbone of an organization, hence the need to put more effort in retaining performing employees. Staff retention in the current economic environment is a major challenge. The major focus for employees in a hyperinflation environment is survival. If the organization cannot provide enough to enable the employee to survive, the employee is likely to look elsewhere for survival. However if organizations manage to identify causes of staff turnover that they can control, they should target those areas for change or making improvements. Unless IT companies treat retention of good employees as a business priority, they will find themselves incurring huge costs in replacing these employees. However we need to acknowledge that retention is difficult to focus on because so many factors affect it, and organizations cannot easily change all of them. In addition the other demands of running a business can supercede most efforts to promote retention.

A Study of Employee Retention in Wipro Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job hes doing, he may switch over to some other more suitable job. In todays environment it becomes very important for organizations to retain their employees. Employees stay and leave organizations for some reasons. The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention. Pay and Benefits: Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. Career Growth and Development: Growth and development are the integral part of every individuals career. If an employee can not foresee his path of career development in his current organization, there are chances that hell leave the organization as soon as he gets an opportunity. Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high. Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations can not keep aside the individual goals of employees and foster organizations goals. Employees priority is to work for themselves and later on comes the organization. If hes not satisfied with his growth, hell not be able to contribute in organization growth.

A Study of Employee Retention in Wipro Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, theyll leave the organization for better jobs. Organization should not limit the resources on which organizations success depends. Work Environment: Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employees interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition. The many challenges that managers and human resource practitioners face today need a concerted effort by all those concerned with the management of human resources in the organization. To highlight this, the statistics got from the first ever survey national survey conducted by All India Management Association (AIMA) can be analyzed. The companies were divided into 4 sectors, namely, manufacturing, services, marketing and hi-tech in order to allow intra industry comparisons. Also, two criteria were placed to decide on whether the company was eligible for the survey or not, the company should have a minimum turnover of 25 crore rupees and an employee strength of above 50. 135 companies participated and their responses were analyzed to understand the most prevalent policies and practices in retention management. Statistics show that 3 out of every 5 software companies and almost 1 out of every 2 manufacturing companies have serious issues relating to retention. Facts also reveal that, 90 per cent of the companies have some or the other problem with respect to retentions. Retention problems are more acute in SAMEs (Small And Medium Enterprises) with turnover of less than 100 crores and headcount less than 100. There are two reasons that can be attributed to this. Firstly, due to lower number of employees on the rolls, the departure of one makes a significant

A Study of Employee Retention in Wipro difference. Also, larger companies can provide higher monetary and non monetary compensation which cannot be afforded by the SAMEs. NEED FOR THE STUDY Employers have a need to keep employees from leaving and going to work for other companies. This is true because of the great costs associated with hiring and retraining new employees. The best way to retain employees is by providing them with job satisfaction and opportunities for advancement in their careers. The saying, good help is hard to find, is even truer these days than ever before because the job market is becoming increasingly tight. Its not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached. The process of employee retention will benefit an organization in the following ways: The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of money to a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative estimate. Loss of Company Knowledge: When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors). Often much time and money has been spent on the employee in expectation of a future return. When the employee leaves, the investment is not realized. Interruption of Customer Service: Customers and clients do business with a company in part because of the people. Relationships are developed that encourage continued sponsorship of the business. When an employee leaves, the relationships that employee built for the company are severed, which could lead to potential customer loss.

A Study of Employee Retention in Wipro Turnover leads to more turnovers: When an employee terminates, the effect is felt throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff. Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her and this goes to the loss of the company directly which many a times goes unnoticed. And even after this you cannot assure us of the same efficiency from the new employee. WIPRO TECHNOLOGIES A COMPANY PROFILE Wipro Technologies is a global services provider delivering technology-driven business solutions. Wipro is the No.1 provider of integrated business, technology and process solutions on a global delivery platform. Azim Premji is the Chairman of Wipro Technologies. He took over the mantle of leadership of Wipro at the age of 21 in 1966. Under his leadership, the fledgling US$ 2 million hydrogenated cooking fat company has grown to a US$1.76 billion IT Services organization serving customers across the globe. Wipro is presently ranked among the top 100 Technology companies in the world. It has 66,000+ employees, serves 592 clients, and has 46 development centers across globe. Wipro Technologies deals in following businesses:

IT Services: Wipro provides complete range of IT Services to the organization. The range of services extends from Enterprise Application Services (CRM, ERP, e-Procurement and SCM) to eBusiness solutions. Wipro's enterprise solutions serve a host of industries such as Energy and Utilities, Finance, Telecom, and Media and Entertainment. Product Engineering Solutions: Wipro is the largest independent provider of R&D services in the world. Using "Extended Engineering" model for leveraging R&D investment and accessing new knowledge

A Study of Employee Retention in Wipro and experience across the globe, people and technical infrastructure, Wipro enables firms to introduce new products rapidly.

Technology

Infrastructure

Service:

Wipro's

Technology

Infrastructure Services (TIS) is the largest Indian IT infrastructure service provider in terms of revenue, people and customers with more than 200 customers in US, Europe, Japan and over 650 customers in India.

Business Process Outsourcing: Wipro provides business process outsourcing services in areas Finance & Accounting, Procurement, HR Services, Loyalty Services and Knowledge Services. In 2002, Wipro acquiring Spectramind and became one of the largest BPO service players. Consulting Services: Wipro offers services in Business Consulting, Process Consulting, Quality Consulting, and Technology Consulting.

Group Companies of Wipro:

Wipro Infrastructure Engineering: It has emerged as the leader in the hydraulic cylinders and truck tipping systems market in India. Wipro Infotech: It is one of the leading manufacturers of computer hardware and a provider of systems integration services in India. Wipro Lighting: It manufactures and markets the Wipro brand of luminaries. Wipro Lighting offers lighting solutions across various application areas such as commercial lighting for modern work spaces, manufacturing and pharmaceutical companies, designer petrol pumps and outdoor architecture.

Achievements of Wipro

First Indian IT Service Provider to be awarded Gold-Level Status in Microsoft's Windows Embedded Partner Program. World's largest independent R&D Services Provider. World's 1st PCMM Level 5 software company. World's 1st IT Services Company to use Six Sigma.

A Study of Employee Retention in Wipro

The first to get the BS15000 certification for its Global Command Centre. Among the top 3 offshore BPO service providers in the world. Only Indian company to be ranked among the 'Top 10 Global Outsourcing Providers' in the IAOP-Fortune Global 100 listings. First company in the world to be certified in BS 7799 (2002) security standards. REASONS FOR CHOOSING WIPRO FOR THE STUDY

Wipro was selected the study due to its high rate of attrition. Wipros rate of attrition at 20.3% is highest in the industry. Attrition is a costly affair. Wipro needs to concentrate all its efforts on retaining its best talent. REVIEW OF LITERATURE 1. Eisenberger (2002) suggests that employers are fighting to get talented employees in order to maintain a prosperous business. Ray Hammer (2000) as well as many other researchers/authors agree. 2. Wood (1999) believes that, there is a straight line between employee satisfaction and customer satisfaction. He believes that todays employees pose a complete new set of challenges, especially when businesses are forced to confront one of the tightest labour markets in decades. Therefore, it is getting more difficult to retain employees, as the pool of talent is becoming more-and-more tapped-out. satisfaction, supports this contention. 3. Brown and Leigh (1996) opine that employees that are satisfied and happy in with their jobs are more dedicated to doing a good job and taking care of customers that sustain the operation. retention. 4. Gelade and Ivery (2003) states that every person will have his or her own definition of what it means to be satisfied with a job. And also, those Job satisfaction is something that working people seek and a key element of employee The research below, which focuses primarily on employee retention through job

A Study of Employee Retention in Wipro employees who are satisfied with their jobs are more productive, creative and be more likely to be retained by the company. 5. Rigby (2003) feels that when there is high retention this introduces new problems for the organization. High retention levels, rather than being a company-wide problem, will often occur in pockets within businesses. For instance, an employee or a team may have become so good at their job(s), that their boss cannot bear too lose them or even promote them, which results in stagnation and de-motivation. 6. Sigler (1999) explains that if retention levels are in line with the norm for the type of organization, then the productive employees should be encouraged to stay and the poor performers encouraged to leave. If this were measurable the then organizations would retain employees whose contribution produces a positive risk adjusted profit for the firm. These employees would have a positive influence on the firm. This is not the case, through various factors that will be discussed in this paper they leave, which forces cost onto the organisation. These employees leave an organisation unmotivated. 7. Hacker (1996) discussed the process of recruitment and advises that employers should consider three areas when they are preparing to employee, these are the cost per hire of an employee; turnover rate; and productivity. The recruiting of an employee contains hidden costs; these include advertising and the time that is employed on screening and interviewing the prospective employee. Therefore, if the recruitment of people is not cost effective option, then high turnover of employees must be avoided. Retention of the current workforce is the most economic solution to an organization. 8. Kinnie and Hutchinson (2005) states that the cost of replacing workers who have left can amount to two and half times a workers annual salary. These costs are rarely specifically identified in any accounting records. Therefore turnover cost data should be used to demonstrate the success of retention strategies over time. because they become dissatisfied, underpaid or

A Study of Employee Retention in Wipro 9. Ramlall (2004) observed that the Human capital theory suggests that some labour is more productive than other labour simply because more resources have been invested into the training of that labour, in the same manner that a machine that has had more resources invested into it is apt to be more productive. 10. Sturman (2003) opines that Employers need to review all the costs involved with employee turnover, not all cost are financial, hidden costs include the reduction in knowledge. These are not tangible, and will not show on the companies accounts, but through a lack of skills can in the long term reduce profit. 11. Armstrong (2001) discussed that organizations are under increasing pressure to recruit the right people for the right job. The economic cost of getting this wrong can be vast, with the resources that have been ploughed into the process. Numerous factors are to be considered during this process including the culture of the organization, legal implications, attracting and employing the correct candidate and the cost in time and resources. Therefore it is paramount that the process is fair, reliable and valid. 12. Alcorso (2003) discussed that recruitment of the right candidate is problematic, the skill of the recruiter is vital to appointing a successful candidate. Insufficient information about employees performance can result in adverse selection by Managers. This arises from where the manager does not know the information h to ask from the candidate and the candidate does not know what to provide. Therefore, productive workers cannot distinguish themselves from non productive candidates. 13. Breadwell and Holden (1994) explained that reviewing and monitoring recruitment practices can lead to a reduction in key employees leaving. If the first stage of retention is recruitment, then best practice will lead to the correct candidate being selected. In the long term this will increase the retention levels of key employees within the organization.

A Study of Employee Retention in Wipro 14. Terpstra (1994) states that voluntary employee turnover can be either dysfunctional or functional for the organization; this is dependant on who leaves. Both low and high performers are generally more likely to leave an organization than are average performers. Therefore, organizations will often shed poor employees (functional turnover), but will also fail to retain star employees (dysfunctional turnover). Therefore organizations need to monitor their turnover of employees. 15. Berry (1997) discussed that key to retaining the right employees is recruiting them in the first place. This process must given consideration to their long term value to the organization. The attraction and retention of key talent, is increasingly pivotal to organizational success. The ability to achieve competitive advantage through people depends in large part on the composition of the work force. This, is the function of who is hired, and how they are developed, these factors will lead to who is retained. 16. Clarke (1994) stated that the problem of attempting to keep talented members of the work force is further complicated because of bounded rationality. This leaves colleagues who cannot improve their positions within the hierarchy more likely to remain with the organization. This is often due to inadequate information on outstanding performance, therefore it is not recognizes financially. Non-productive and productive workers end up receiving the same or nearly the same compensation and package of perks because of managements inability to distinguish talented employees from the rest of the labour force in the organization. 17. Sommers (1995) suggested that incentive pay can be used for employees, setting targets and when they are met rewarding with cash bonuses. Share ownership by the employee is another type of pay incentive. It in essence makes the employee a shareholder of the organization aligning the interests of the employee with the owners. Employee share ownership can come through restricted share plans where ownership of the share is not transferred to the employee until after a specific period of time has passed or a specific goal has been achieved. This not only provides the employee with the incentive to drive the share

A Study of Employee Retention in Wipro price higher through their work effort, but also remain with the organization until maturity of the plan. 18. Pfeffer and Viega (1999) explained that management can ensure talented employees are given autonomy in their job functions and are given meaningful assignments, allowing them to be involved in the decision making for their area of expertise. Pleasant working conditions can entice productive workers to stay in their organization and not look elsewhere. In addition, offering these employees training to keep them current on their job functions and allowing them to learn new skills can also be utilized to improve employee satisfaction with the organization. 19. Ulrich (1995) stated that organizations no longer offer a job for life there is no longer guaranteed employment, with a pension as a reward for loyalty and compliance. Employees are increasingly mobile, changing employment for promotion, reward and job satisfaction; top employees have more choice as to where to work. To retain these key employees the organizations culture needs to allow an environment of personal growth. With less job security, the best reward an organization can give an employee is transferable skills. 20. Williams and Anderson (1991) observed that workers have been forced to take more responsibility for their own careers, going where the work is rewarding and where they can develop skills that will guarantee their employability in whatever organisation. This mobility and free agency has created greater competition for skilled workers between organisations. Good workers have more choices than before, and are more likely to use them. 21. Browning and Edgar (2004) suggested that when Maslows hierarchy theory is applied to organisations, the implications for managerial actions become obvious. Managers have the responsibility to create a proper climate in which employees can develop to their fullest potential. Failure to provide such a climate, would increase employee frustration and result in poorer performance, lower job satisfaction, and increased withdrawal from the organisation.

A Study of Employee Retention in Wipro 22. Huselid (1995) differentiated overload in terms of quantitative and qualitative. Quantitative refers to having too much to do, whilst Qualitative means work that is too difficult. Employees at all levels occasionally find themselves faced with excessive work demands, and will leave it if is the only course of action. 23. Patterson, West et al. (2005) explained that recent research validates factors such as stimulating and challenging work, career growth, learning, and development are keys to retention. This research challenges conventional HR perception in several aspects. The most notable disparity of views emerges when comparing the importance of boss reputation, the perceived quality of the immediate manager. The CLC research concluded that high-value employees rate this as the single most important consideration in staying with an organisation, that 80 percent of turnover is related to unsatisfactory relationships with their boss. 24. Edgar and Geare (2005) argued that employees are more likely to remain with an organisation if they believe that their managers show interest and concern for them. Buckingham added that They are know what is expected of them, if they are given a role that fits their capabilities and they receive regular positive feedback and recognition.

OBJECTIVES OF THE STUDY 1. To study the factors that affect employee retention in IT sector 2. To study the attributes that can be adjusted to retain employees in Wipro Technologies. HYPOTHESIS H0 Pay and benefits, Career Growth, Training and Development, Work Environment and Job Satisfaction are not significant for employee retention.

A Study of Employee Retention in Wipro METHODOLOGY The primary data was collected through questionnaires. These questionnaires were distributed to 60 employees of Wipro Technologies. Due care was taken to make sure that the employees filled this with interest and not as a routine. The data was collected only from those employees who has completed at least one year in the organization. The selection of employees is a random sampling for the study. Questions 1 to 6, are related to the employees tenure in the organization and the ratings that he or she would assign to each of the factors considered for this study in view of their longer tenure with the organization Questions 7 and 8 are related to Pay and Benefits, 9 and 10 are related to Career Development & Growth, 11 and 12 are related to Training and Development, 13 and 14 are related to Work Environment and 15 and 16 are related to Job Satisfaction. SAMPLE The study is of employee retention in IT sector. Since all the companies, irrespective of their ownership and projects undertaken, compete in the same global market, it is deemed appropriate to analyse one of the leading companies. The sample comprises employees from Wipro Technologies, Gachibowli. The basic motive behind choosing this organization is increasing global presence of Wipro in varying aspects of technology solutions. TECHNIQUES OF ANALYSIS The comparative study is done with the help of 2. Mean and coefficient of correlation have also been used for the analysis of the link between the two groups of employees of the organization. SOURCES OF DATA The data required for the study is collected both from primary and secondary sources. Primary data is collected by conducting personal interviews,

A Study of Employee Retention in Wipro discussions with the employees and managers considered for the study. In addition, data was collected through questionnaires, feedback, observations etc. Secondary data includes reports and records of the organizations for the past two years and the data collected from the NASSCOM website on the rates of attrition. Research studies conducted by individuals, institutions and agencies, and various other journals were considered. PERIOD OF THE STUDY The study aims to understand the attributes affecting employee retention in Wipro. The study spread over a period of two years i.e., from 2007 to 2009. However, data pertaining to the period before that considered for the study was also looked into depending upon the requirement for the study. SCOPE OF THE STUDY The data required for the present study was collected using questionnaires. The data was collected from the employees of Wipro Technologies, Gachibowli across the age group of 20 to 40 years. Wipros global IT services business has 97,552 employees, including 16,500 in the BPO division. There are 2645 employees in Wipro, Hyderabad and 1453 employees in Wipro Technologies, Gachibowli. The sample represents a 4.1293% of the total headcount. CHAPTERISATION Chapter I INTRODUCTION

The first chapter being introductory helps in understanding the importance of HRM and Employee Retention in the IT industry. This chapter provides information regarding the objectives, methodology, scope, statistical tools appointed, chapterisation and also limitations. A major part of this chapter consists of the literature review.

A Study of Employee Retention in Wipro Chapter II TALENT MANAGEMENT IN IT SECTOR

This chapter was taken up keeping the pressing problem of talent management in mind. The chapter covers aspects and limitations of retention in the IT sector and the factors affecting the same. Chapter III FACTORS EFFECTING EMPLOYEE RETENTION IN WIPRO Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. This chapter examines the factors affecting retention and the steps taken by Wipro to tackle these factors. Chapter IV DATA ANALYSIS AND INTERPRETATION

In current global market, companies are composed by competitors, regardless of industry. To develop a competitive advantage, it is important that firms truly leverage on the workforce as a competitive weapon. This chapter analyzes the various factors affecting employee retention and the attributes that can be adjusted to improve employee retention. It also presents a comparative study between employees of two different age groups and the different requirements of the two groups. Chapter V SUMMARY, CONCLUSIONS AND SUGGESTIONS

This chapter being the last chapter gives conclusions and suggestions and briefly explains the objectives, methodology, findings and limitations of the study. This chapter also gives the scope for further study. LIMITATIONS OF THE STUDY 1. The study is confined only to Wipro Technologies, Gachibowli 2. The study is confined only to Wipro and does not cover other IT companies in its cadre. 3. Pay and benefits, career growth and development, training, work environment and job satisfaction are only some of the few factors that effect employee retention; future studies in this area could possibly

A Study of Employee Retention in Wipro include other variables that potentially have an impact on retention on the basis of existing literature. 4. No attempt has been made in this study to do a longitudinal analysis, that is, to explore the influence of these factors on retention over a period of time.

A Study of Employee Retention in Wipro

Chapter 2 Talent Management in IT Sector

A Study of Employee Retention in Wipro

Chapter 2 TALENT MANAGEMENT IN IT SECTOR

This chapter talks about importance of retention management strategies in the IT sector and the various strategies generally adopted in the sector. It also explains about the IT sector in India and the various attrition rates in the different sectors in India. This chapter also studies each of the retention management strategies in detail giving the various reasons for each of the factors. This chapter enables us to form a general opinion about the various strategies adopted so that further study can be conducted on the specific organization under consideration, viz. Wipro Technologies.

IT SECTOR IN INDIA Information Technology (IT) industry in India is one of the fastest growing industries. Indian IT industry has built up valuable brand equity for itself in the global markets. IT industry in India comprises of software industry and information technology enabled services (ITES), which also includes the business process outsourcing (BPO) industry. India is considered as a pioneer in software development and a favorite destination for IT-enabled services. The origin of IT industry in India can be traced to 1974, when the mainframe manufacturer, Burroughs, asked its India sales agent, Tata Consultancy Services (TCS), to export programmers for installing system software for a U.S. client. The IT industry originated under unfavorable conditions. Local markets were absent and government policy toward private enterprise was hostile. The industry was begun by Bombay-based conglomerates which entered the business by supplying programmers to global IT firms located overseas.

A Study of Employee Retention in Wipro During that time Indian economy was state-controlled and the state remained hostile to the software industry through the 1970s. Import tariffs were high (135% on hardware and 100% on software) and software was not considered an "industry", so that exporters were ineligible for bank finance. Government policy towards IT sector changed when Rajiv Gandhi became the Prime Minister in 1984. His New Computer Policy (NCP-1984) consisted of a package of reduced import tariffs on hardware and software (reduced to 60%), recognition of software exports as a "delicensed industry", i.e., henceforth eligible for bank finance and freed from license-permit raj, permission for foreign firms to set up wholly-owned, export-dedicated units and a project to set up a chain of software parks that would offer infrastructure at below-market costs. These policies laid the foundation for the development of a world-class IT industry in India. Today, Indian IT companies such as Tata Consultancy Services (TCS), Wipro, Infosys, HCL et al are renowned in the global market for their IT prowess. Some of the major factors which played a key role in India's emergence as key global IT player are: Indian Education System The Indian education system places strong emphasis on mathematics and science, resulting in a large number of science and engineering graduates. Mastery over quantitative concepts coupled with English proficiency has resulted in a skill set that has enabled India to reap the benefits of the current international demand for IT. High Quality Human Resource Indian programmers are known for their strong technical and analytical skills and their willingness to accommodate clients. India also has one of the largest pools of English-speaking professionals.

A Study of Employee Retention in Wipro Competitive Costs The cost of software development and other services in India is very competitive as compared to the West. Infrastructure Scenario Indian IT industry has also gained immensely from the availability of a robust infrastructure (telecom, power and roads) in the country

TALENT RETENTION: A PRESSING PROBLEM In a recent survey of 57 CEOs and HR professionals Talent retention is identified as the second most HR challenge to critically meet the business demands beyond tomorrow next only to Creating a high performing culture. The results of the survey are shown in Table 2.1 The results clearly demonstrates that 28% of the respondents gave first rank to Talent Retention as the most significant HR challenge to critically meet business demands and none of them gave the bottom rank. Talent retention is becoming the most pressing problem for all top HR professionals and this is the main topic under discussion even during the time of recession. The All India HR Summit conducted in Delhi in April 2009, discussed the topic of talent retention and conducted workshops to improve talent retention in organizations.

A Study of Employee Retention in Wipro Table 2.1 HR Challenges Survey HR Challenge Creating a high performing culture Talent Retention Recruiting in todays context Managing mindsets Training for Growth Compensating Knowledge Workers Building interpersonal relationships Going Global HR systems implementation Human Capital Practices Management 8 9 10 6 6 0 22 28 17 7 6 14 6 3 8 Rank in order of importance Percentage of top response (# 1 rank) 47 28 22 6 6 Percentage of bottom response (#10 rank) 3 0 0 8 0

1 2 3 4 5

Source: Madhok, Anneta (2008) Managing talent tomorrow, Indian

EMPLOYEE ATTRITION Employee attrition is a very big problem not only in India but outside India too. Attrition rate is increasing day by day and the software industry is the one that is affected the most. Why an Employee leaves a company is the question asked by most of the employers. Companies even hire Private HR professionals to study the company's work and find out why an employee is dissatisfied.

A Study of Employee Retention in Wipro HR department does the recruiting of new employees and then send them for training so that they can understand work and work culture and become better professionals. Each and every company faces employee turn over problem whether big or small. An employee leaves his present job for another job to get better pay package and good working conditions. Every Company calculates Employee attrition rate and takes measures to reduce it. The facts and figures are not made public as it may tarnish the image of the company in front of its own employees and its loyal customers Employee attrition costs a lot to the company. There are various costs which are borne by the company at the start when the employee is under training period. Costs such as Conveyance Cost Cost of lodging of the new employee Trainers cost Cost of venue where training will be conducted Materials to be supplied during training process A company has a training period of 2 to 6 months. During this time an employee is not fruitful for the company. If an employee leaves the company when he starts working, company suffers a big loss in terms of money as well as workforce. Every company takes measures to hold the talented workforce by means of perks, increments, bonus and extra facilities. No one wants to lose good brains to their competitors. Flexible working conditions have been given to employees who have problem working 10 5. Private hospitals for employees where they can get their regular health check up done without spending much money. Free overseas tour once in a year when a target is achieved. Few Companies are getting more and more work savvy and just want to get their work done by hook or by crook. The mentality needs to be changed. Target for completion of a work should be there but that should not hamper an employees personal life. Companies should conduct various seminars on how to balance personal and

A Study of Employee Retention in Wipro professional life. A employee can be productive if and only if his personal life is balanced. Make employees a part of your work culture family and see the difference. Attrition rate cannot become completely obsolete but it can surely be minimized. ATTRITION RATES IN IT SECTOR Employee Attrition is one of the most critical problems which Indian IT industry faces today. Time to time, employee surveys are done to figure out what makes employees to love or hate their employer. Based on these surveys, IT companies take appropriate steps with hope of reducing the attrition. This is an interesting fact that some companies are inherently immune to attrition, whereas some companies fail to control attrition despite desperate efforts. Almost every sector in India is facing high rates of attrition these days. A recent study revealed that employees leave either because of compensation reasons or due to better growth opportunities. According to NASSCOM, Indian IT-ITES industry recorded US$ 49.6 billion in revenues in 2007-08. The revenue of US$ 55-60 billion has been projected in 2008-09 at a growth rate of 28-30 per cent. The IT industry's contribution to GDP was 8.6 per cent in 2008-09. The Following graph describes the Attrition Rates in Different Sectors In India.

A Study of Employee Retention in Wipro Chart 2.1: Attrition Rates

Attrition Rates in 2008

50 45 40 35 Percentage 30 25 20 15 10 5 0 Manufacturing Retail Voice Based BPO Non Voice BPO Financial Pharmaceuticals Biotechnology Construction Capital Goods Telecom Aviation Services FMCG IT/ITES

Source: NASSCOM Report (www.nasscom.org) Though the IT/ITES sector is booming, it is constantly facing high attrition rates of 25% - 30%. Even the big brands are also facing the same problem. Below are the details of attrition rates of various players in the IT sector.

A Study of Employee Retention in Wipro Chart 2.2: Attrition Rates in IT Companies

Attrition Rates in IT Companies

25 20 Percentage 15 10 5 0 Nucleus Flextronics HCL Infosys Geometric NIIT Techonologies Infosys Sasken Wipro TCS

Source: NASSCOM Report (www.nasscom.org) Inspite of being IT giants, the 4 companies, namely Wipro, Satyam, Infosys and TCS are facing high attrition rates. They are facing problems in retaining their employees irrespective of the fact that they are providing an attractive compensation packages to their employees. TCS, Infosys and Wipro faced high attrition rate as compared to Satyam. Wipro: The attrition rate of Wipro is 16.2% during the last quarter of 2006-07. On annual basis, the attrition rate of Wipro BPO was 48 %. The main reasons being told are the odd working hours and the higher studies. The attrition rates of Wipros IT Division rose up to a 20.3% during the year 2008-09. Wipros attrition rate is the highest in the industry. Infosys: Attrition rate for Infosys for the period April-June 2009 was 11.9%. But now it has increased to 13.7%, same as in the last quarter. TCS: The attrition rate for TCS is 11.5 %, up from 10.6% last year.

A Study of Employee Retention in Wipro TALENT MANAGEMENT STRATEGIES IN IT SECTOR Software is a wealth and job creating industry, which has in just a few years, grown to US $ 1 trillion, employing millions of professionals worldwide. The Indian software industry has burgeoned, showing a nearly 50% compounded annual growth rate over the recent years. Being a knowledge-based industry, a high intellectual capital lends competitive advantage to a firm. Intellectual capital comprises human capital and intellectual assets, the latter being any created bit of knowledge or expertise. With a global explosion in marketopportunities in the IT sector, the shortage of manpower both in numbers and skills is a prime challenge for HR professionals. The related issues are varied indeed: recruitment and of world-class planning, workforce and their retention, and compensation career technological obsolescence

employee turnover. WORKFORCE RETENTION AND MOTIVATION Retention and motivation of personnel are major HR concerns today. People, a Gartner group company specializing in management of human capital in IT organizations has observed that the average tenure for an IT professional is less than three years. Further, the use of new technologies, the support of learning and training, and a challenging environment ranked higher than competitive pay structures as effective retention practices. A recent survey of 1028 software professionals from 14 Indian software companies, showed that while the professional gave importance to personal and cultural job-fit, HR managers believed that the key to retention was salary and career satisfaction. Money was a prime motivator for 'starters', but for those into their third or fourth jobs, their value-addition to the organization was more important. Monetarily, offering 'the best salaries in industry' is the minimum every company is doing, apart from performance-based bonuses, long-service awards, and stock options. Many organizations frequently conduct employee satisfaction and organization climate surveys, and are setting up Manpower Allocation Cells (MAC) to assign 'the right project to the right person'. In fact,

A Study of Employee Retention in Wipro some are even helping employees with their personal and domestic responsibilities to satisfy & motivate their workforce. COMPENSATION AND REWARD Increasing demands of technology coupled with a short supply of professionals (with the requisite expertise) has increased the costs of delivering the technology. This makes incentive compensation a significant feature, with the result that software companies have moved from conventional pay-for-time methods to a combination of pay-for-knowledge and pay-for-performance plans. With the determinants of pay being profit, performance and value-addition, emphasis is now on profit sharing (employee stock option plans) or performance-based pay, keeping in view the long-term organizational objectives rather than short-term production-based bonuses. Skills, competencies, and commitment supercede loyalty, hard work and length of service. This pressurizes HR teams to devise optimized compensation packages, although compensation is not the motivator in this industry. In a volatile economy, businesses need to optimize the value created by their executives through effective reward and compensation programs that reduce costs, maximize financial efficiency and, at the same time, motivate key staff members. As more and more organizations face continuing talent shortages and reward plans that fail to ultimately payout, an integrated approach to tax, finance and human resources matters is required. Clearly, first-class employee compensation packages are a prerequisite for companies that want to attract and retain high-caliber, skilled employees. The problem is, the costs of such programs can be overwhelming. Insurance packages alone have become a contentious point as the cost of healthcare continues to sky rocket. Plus, companies are already feeling the affects of declining population growth and the dramatic increase in older workers, which again will push up compensation and benefit costs over the next few decades.

A Study of Employee Retention in Wipro Even outside of healthcare issues, compensation strategiesboth during the time an employees working life and after retirementcan be complex to devise and difficult to maintain. However, as per any savvy business professional, by aligning your compensation and performance management programmes (base pay, perquisites, short-term and long-term incentives) with the business objectives, can gain a competitive advantage over the market rivals. The situation, market context, and challenges are unique and require a tailor-made solution; in other words every organization needs a customized remuneration structure based on internal job classifications, appropriate career paths, and a performance management system that is also responsive to the shareholders objectives. In short, the value created by the organizations workforce needs to outweigh payroll and accounting expenses. And, while executive compensation often garners the most scrutiny, costs associated with wider employee reward plans also need to be addressed. A comprehensive compensation and benefits package should be designed to attract, retain, and reward the people necessary to create longer-term growth and profitability. Wherever possible, the organization should provide the ability for employees to participate in a range of compensation programs, which allow employees to share in the organizations financial success through profit-sharing and stock programs; and innovative benefits that help employees and their families achieve improved quality of life and financial security. A comprehensive package should include the following:

Provides financial rewards based on individual performance; Shares the company's financial success with employees; and, Provides employees with a range of health care, insurance coverage, paid leave and employee development opportunities.

The graph below illustrates the percentage of companies offering different types of common benefits

A Study of Employee Retention in Wipro Chart 2.3 Common Benefits offered by Companies

Common Benefits Offered by Companies

Personal Loan Company Accomodation Car Program Personal Accident Insurance Hospitalisation Cover Provident Fund Gratuity 0 20 40 60 Percentage 80 100 120

Source: Shruti Ambegaoker (2008) Watson Wyatt Research Report An examination of the percentage of companies from different sectors providing various benefits clearly states that the number of companies providing various benefits in the IT sector is very low compared to the other sectors. Table 2.2 shows a comparative study between different sectors in terms of the types of benefits given to the employees.

A Study of Employee Retention in Wipro Table 2.2 : Comparative Study of Sectors in terms of Benefits Percentage Of Companies Providing Auto Pharmaceutical IT ITES Ancillary 100 100 100 100 89 93 100 100 22 46 20 6 67 80 91 95 67 56 56 33 33 22 22 22 56 27 22 79 53 87 80 23 27 33 36 53 13 7 18 47 30 53 95 21 53 30 29 40 25 57 46 85 25 78 9 11 6 18 41 39

Benefits Offered Gratuity Provident Fund Housing Loan Hospitalisation Cover Personal Accident Insurance Company Accommodation Car Program Superannuation Personal Loan Vehicle Loan Club Membership Group Term Life Insurance Regular Medical Check Up Hard Furnishing Employee Education Scheme House Rent Deposit Scheme

General Industry 100 92 36 84 78 64 68 44 61 32 27 40 48 20 27 8

FMCG 100 95 8 73 61 47 61 42 44 8 44 37 50 17 11 4

Source: Shruti Ambegaoker (2008), Watson Wyatt Research Report CAREER GROWTH One of the key retention challenges is meeting people's career expectations. Inevitably, many people want to move upwards quickly; sometimes this just isn't possible. What you need to do is discuss expectations from the very beginning. Some seemingly ideal candidates don't seem quite so attractive once you realise that they expect to be promoted almost straight away, otherwise they'll be off, causing more disruption, more trouble than it's worth. Other candidates, perhaps slightly less driven, less ambitious, may be a better fit for your

A Study of Employee Retention in Wipro situation, their aspirations in line with your company's typical career progression timeframes. Current employees may also have unrealistic expectations. In this case, their manager or supervisor needs to use a bit of imagination, creativity, flexibility, to see if a compromise can be reached. Perhaps providing some developmental coaching so the employee can gain the skills they need to gain a promotion. It is no use simply telling employees that their expectations are unrealistic, that almost inevitably sends them towards the exit door. There needs to be a sense of progress, a clear pathway towards their medium term and longer term career goals. There needs to be a reason to stay around. GOOD WORK ENVIRONMENT Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employees interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition.

A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind. Respect for the individual: Respect for the individual is the must in the organization. Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs ands plans work for each employee. It is his duty to involve the employee in the processes of the organization.

A Study of Employee Retention in Wipro So an organization should hire managers who can make and maintain good relations with their subordinates. Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the relationships among colleagues. Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise hell feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is. Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and hell show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc. Individual development: Taking proper care of employees includes acknowledgement to the employees dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc. Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones. BEING THE BEST PALCE TO WORK WITH Just as with any other profession, what really matters to software professionals is selecting 'the best place to work with' which is what every company is striving to be. The global nature of this industry and the 'projectenvironment' (as opposed to product environment) has added new cultural dimensions to these firms. In a value-driven culture, values are determined and shared throughout the organization. Typically, areas in which values are expressed are: performance, competence, competitiveness, innovation, teamwork, quality, customer service, and care and consideration for people. Flat structure, open and informal culture, authority based on expertise and

A Study of Employee Retention in Wipro ability rather than position, and flexi-timings are some of the norms software firms follow. The idea is to make the work place a 'fun place' with the hope of increasing loyalty and commitment. Hiring and retaining great employees is a key factor in the success of your business. Without the right people with the right skills, your business cant consistently fulfill your customers needs. Great employees support your business success and also allow you, the business owner, to fulfill your role as the entrepreneurial leader. Without effective managers to lead and organize the work of the business, and technicians to do the work, you wouldnt have the time to focus on the critical strategy that drives your business. UPGRADATION OF SKILLS THROUGH RETRAINING Rapid and unpredictable technological changes, and the increased emphasis on quality of services are compelling software businesses to recruit adaptable and competent employees. Software professionals themselves expect their employers provide them with all the training they may need in order to perform not only in their current projects, but also in related ones that they may subsequently hold within the organization. As observed by Watts Humphrey, Fellow of the Carnegie Mellon University, "as software professionals gain competence, they do not necessarily gain motivation. This is because a creative engineer or scientist who has learned how to accomplish something has little interest in doing it again. Once they have satisfied their curiosity, they may abruptly lose interest and seek an immediate change". And when the rate of technological change is high may be higher than the time required to acquire competence in one area professionals could undergo psychological turbulence owing to the need to work in a new technology throughout their career. They want to gain new knowledge, which will be utilized by their organization. On the basis of the new learning they want to work in higher segments of software value chain. Therefore, constant up-gradation of employee skills poses yet another challenge for HR personnel. New employee orientation, or new employee onboarding, is a significant factor in helping new employees hit the ground running. Training that helps

A Study of Employee Retention in Wipro each employee grow their skills and knowledge to better perform their current job is appreciated as a benefit. Training also increases employee loyalty, and thus retention, and helps you attract the best possible employees. The American Society for Training and Development has traditionally recommended a minimum of 40 hours of training a year for every employee. This is consistent with the emphasis employees place on the opportunity to grow and develop both their skills and career while in your employ. The chance for ongoing development, is one of the top five factors employees want to experience at work. In fact, the inability of an employee to see progress is an often cited reason for leaving an employer. CONCLUSION With the advent of a work situation where more and more companies are having to concede that their valued employees are leaving them, a new concept of career and human resource management is bound to emerge. The focus of this new paradigm should not only be to attract, motivate and retain key 'knowledge workers', but also on how to reinvent careers when the loyalty of the employees is to their 'brain ware' rather than to the organization. With lifetime employment in one company not on the agenda of most employees, jobs will become short term. Today's high-tech employees desire a continuous up-gradation of skills, and want work to be exciting and entertaining a trend that requires designing work systems that fulfill such expectations. As employees gain greater expertise and control over their careers, they would reinvest their gain back into their work. HR practitioners must also play a proactive role in software industry. As business partners, they need to be aware of business strategies, and the opportunities and threats facing the organization. As strategists, HR professionals require to achieve integration and fit to an organization's business strategy. As interventionists, they need to adopt an all-embracing approach to understanding organizational issues, and their effect on people. Finally, as innovators, they should introduce new processes and procedures, which they believe will increase organizational effectiveness.

A Study of Employee Retention in Wipro

Chapter 3 Factors affecting Employee Retention in Wipro

A Study of Employee Retention in Wipro

Chapter 3 FACTORS AFFECTING EMPLOYEE RETENTION IN WIPRO

This chapter helps to understand the major talent management strategies adopted by Wipro Technologies to retain its best talent. Retention is a major issue for any major player and an even bigger concern for Wipro for its highest rate of attrition in the industry. This chapter studies all the talent management strategies in comparison to other major players in the IT sector so as to understand where Wipro can make minor modifications in its strategies to be rated the best in the industry.

INTRODUCTION Talent retention is identified as the second top HR challenge to critically meet the business demands beyond tomorrow. Organizations can use a combination of five strategies viz., pay and benefits, career growth, learning and development, work environment and job satisfaction to create and retain a pool of talented employees for the organization. Successful companies assign the same importance to employer branding as they give to product branding which help them in becoming an employer of choice. They are continuously innovating and inventing new ways to keep talented employees stick to the organization which is changing the face of talent management in India. Now more than ever in the history of business, it is imperative for the organizations to manage people well. The shift from industrial age to the knowledge workers age is sweeping the country, in fact the whole world. In todays information economy, peoples knowledge, skills, and relationships are an organizations biggest asset and main source of competitive advantage. People related costs have risen to more than two thirds of

A Study of Employee Retention in Wipro organizational spending. Increasingly, talent attraction and retention is viewed as a significant driver of shareholder value and bottom line results. Hewitt Best Employers in Asia 2005 study clearly shows that best employers record over 60 percent higher revenue growth, 30 percent higher growth in revenue per employee and half the recruitment costs of the rest. A K Balyan, HR Executive Director of ONGC Ltd, describes one of his most important tasks as a fight to end, the flight of talented professionals from his organization. The fight so far has been immensely successful, Balyan says, as ONGC has been able to hang on to its talent pool despite the entry of so many multinationals and private sector competitors after liberalization. According to a survey done by the All India Management Association (AIMA), 90 per cent of Indian companies have talent retention problems. The last decade has seen acute problems in sourcing right talent, rising attrition rates, decreasing retention rates, and poaching of star employees by competitors. To deal with the problems companies resorted to extensive organizational change programmes and OD interventions from outside consultants. These large scale programmes without any proper diagnose of the prevailing problems resulted in more troubles rather than any fruitful changes for the organizations.

TALENT MANAGEMENT STRATEGIES IN WIPRO Talent Management basically requires proper diagnose of the current employee attitudes and organizational culture and than targeting the problem through a suitable strategy. Wipro does not have a Human Resource Department; instead its entire Human Resource Wing is divided into different departments that handle specialized issues. Wipro has a Talent Management Department with highly qualified HR professionals targeting the problem of employee attitudes and culture and providing good solutions for retention. The

A Study of Employee Retention in Wipro strategies adopted by the department to manage talent can be best depicted by the Talent Management Matrix as shown in Chart 3.1 Chart 3.1 Talent Management Matrix

Pay and Benefits

Job Satisfaction

Career Growth

Talent Retention

Work Environment

Learning and Development

Source: Lily Berry (1997), Psychology at Work

As shown in figure the strategies to attract and retain talent viz. pay & benefits, learning and development, work environment and job satisfaction can range from highly individual to communal and highly tangible to intangible. Wipro uses a combination of these to succeed in their talent management efforts. The various talent management strategies and the success achieved by Wipro and its competitors by using these strategies are discussed below:

A Study of Employee Retention in Wipro PAY AND BENEFITS Pay is the most important factor responsible for keeping the employees in the organizations. It should be kept competitive to ensure that the employees do not defect to competitors. Wipro adopts various vehicles to validate and benchmark its salary and employee emoluments. It participated in a market to market exercise done by agencies that surveys compensation trends. It also carries out continuous quick market exercises to validate trends in the market place and findings of Benchmarking exercises. Apart from offering competitive salaries, introducing variable pay component in the total compensation package acts as a major morale booster for superior performers. IT & ITES players are using variable pay as a strategic tool not only to retain but also for taking the best out of their employees. At Wipro, variable component in pay at higher levels is between 30-50 percent whereas at lower levels, it varies between 7-15 percent. At Infosys, Variable pay varies from 1030 percent, whereas at Polaris Software, it varies from 5 percent at lower levels to 25 percent at senior-most level. Only 85 percent of IT companies had variable pay plans in 2005, compared to 89 percent in 2008. Significantly, variable pay as a percentage of total compensation has increased from an average of 11.5 percent to nearly 19 percent across all sectors. Many organizations today actively differentiate high performers, and in the 2007-08 study high performers received double the salary increase of an average performer. Sectors also display differentiation in their appetite for variable pay. The increase in the variable pay among various industry sectors is shown in Table 3.1

A Study of Employee Retention in Wipro Table 3.1 Growing Variable Pay among various Industry Sectors Variable Pay in 2005 11% 13.5% 10.9% 12.9% 14% 19.2% Variable Pay in 2008 16.2% 23.2% 13.7% 16.4% 17.8% 23.5%

Industry Manufacturing Banking IT ITES Telecommunications FMCG

Source: Vaishvanath, Sharad (2006), The evolving rewards landscape in India Hewitts research also shows that the services sectors offer variable pay more than capital intensive sectors. The success of a services company lies in its people, and therefore service-oriented organizations are more willing to include a higher variable pay component in their compensation structures. Wipro runs offices both in India and abroad. The salary brackets of the employees classified according to the ranks are given in Table 3.2 Table 3.2: Payscale of Employee at Wipro Employee Class A+ Class A Class B+ Class B Class Technician Zero level No of Employees 128 1240 33000 22000 4000 3440 Salary (Rs/Month) 120000 U.S $ 150000 60000 40000 35000 10000

Source: Steve Hamm (2007), Bangalore Tiger

Offering flexible benefits is another way to raise employee satisfaction. In India, some 10-15 percent of companies allow executives to make their own mix of salary packages. Wipro has adopted a flexible pay system in which all

A Study of Employee Retention in Wipro managerial employees can design their own compensation package based on their individual needs like car, furnishings, etc. Wipro (HR) Head believes that this flexibility in compensation structuring helps satisfy individual needs better at different stages in his career or life. Some other companies, such as Marico and Accenture have similar approach. Another area in which employers need to look while framing the retention strategy, is Employee Benefits, such as, free medical & transport facilities, company accommodation, life insurance, savings and investment plans, employee stock option plans (ESOP), paid holidays, tax assistance, credit cards and the list is endless. Wipro has a group insurance scheme for its 9000 employees in Hyderabad where each employee is covered to the tune of Rs. 5 Lakhs. The provider of this policy is ICICI Prudential. The insured employees did not have to undergo any prior medical examination. It is also has an Employee Stock Offer Plan (ESOP). Under the plan, about 110 top performers have been offered 152,000 warrants, which can be exercised to buy the companys shares within the lock in period of five years. Wipro also provides Cab Service from the city to the respective campus to protect employees from a 60-minute harrowing drive through the crowded roads. Wipro offices also have bank extension counters. TCS on the other hand offers a number of benefits to employees such as loans for housing, personal computers, durable consumer goods, and automobiles; medical insurance for employees and family; Air fares for spouse and two children; medical insurance coverage; bank extension counters; welfare trust facilitation for higher education and retirement benefits.

A Study of Employee Retention in Wipro CAREER GROWTH A promotion is the advancement of an employee's rank or position in an organizational hierarchy system. In Wipro, promotion may be an employee's reward for good performance i.e. positive appraisal. Before the company promotes an employee to a particular position it ensures that the person is able to handle the added responsibilities by screening the employee with interviews and tests and giving them training or on-the-job experience. As per Guidelines for supervisory employees promotion/up gradation, applicable to the present year, Manager (HR) prepares the list of eligible employees. Simultaneously, V P (HR) also asks for recommendations from HODs. A comprehensive list is then prepared by Manager (HR) and submitted to the EPPP which is announced by the Site President, for Executive and Manager Family, and by the Group President (MSD), for Leader Family. Bases of Promotion:1. Seniority:Seniority simply depends upon how long the employees is doing job with the company. The length of service and talent are both interrelated with each other. It is based on the tradition of respect promotion decision. 2. Merit:Merit implies the knowledge, skill and performance records of an employee. It helps to motivate competent employee to work hard and acquire new skills. It helps to attract and retain young and promising employees in the organization. On the above basis, promotion of employees is done in Wipro. Wipro also prompts employee by conducting different case studies on different aspects of Information Technology. Working at Wipro is very competitive and smart work and projection is required for growth. for older people. It creates a sense of security among employees and avoids conflict arising from

A Study of Employee Retention in Wipro LEARNING AND DELVELOPMENT The importance of Learning & Growth in order to retain ambitious employees cannot be undermined especially when the competitors have a well established training system. It not only acts as a way to attract and retain employees but also provides competitive advantage by strengthening the intellectual base of the company. According to Prashant Sachdeva, Business Analyst, IT & Research, Elixir Web Solutions, With the face of business changing & knowledge worker increasing in almost all organizations, the factor that currently retain people are opportunities to learn and grow. Training & Development of individuals is a key focus area at Wipro. Wipro invests about 4 percent of its annual revenues in Learning and Development, to build competency capital within the company in cutting edge technologies, domain and functional areas. Special emphasis is placed on providing necessary learning interventions to associates with potential of being leaders in the company. Wipro has state of the art training facilities in all its delivery centers. The centers are equipped with world-class infrastructure. The Talent Transformation Division handles this in Wipro. For those with

less than one year of experience a well-structured induction training program is conducted. This will cover all aspects of software development skills that are required. As a PCMM Level 5 organization, there is also high focus on Competency Development. Talent Transformation Department has a mandate to provide technical & business skill training based on the departmental and divisional need. All employees are eligible to take training based on the competency gap identified or Project need. In addition to class room training the employees can take e-Learning with out waiting for class room training. However the training calendar for each quarter is rolled out at the beginning of the quarter so that employees can make themselves free for the desired training.

A Study of Employee Retention in Wipro Compliance and Regulatory training is an important aspect in todays regulated environment and is often implemented as part of one of Wipros corporate initiatives. Wipro Leaders Qualities Survey, which started in 1992, is one of the oldest leadership development initiatives. It has successfully contributed nurturing top class business leaders in Wipro. There are 8 Wipro Leadership Qualities, which are based on Wipro vision, values and business strategy. In order to identify and help leaders develop these competencies Wipro adopts a 360degree survey process. This is an end-to-end program, which starts with the obtaining of feedback from relevant respondents and ends with each leader is a and drawing up a Personal Development Plan (PDP) based on the feedback received. The PDP is developed through Winds of Change which seven-step program that helps in identifying strengths improvement areas, and determining the action steps. Chart 3.2: The Leadership Development framework at Wipro

Objective Setting Lifecycle Leadership Programme

Competency Based Performance Appraisal

Early opportuniti es

Wipro Leader

WLQ 360 degree

HR Review and Planning

Meet your people program

CSS customer inputs

Source: The learning and development section, www.wipro.com

A Study of Employee Retention in Wipro Wipro has developed an approach for Life Cycle Stage Development Plan. Training and development programs at various stages have been designed by mapping the competencies to specific roles. Competencies specify the specific success behaviors at every role. Entry-level program (ELP) - The program covers the junior

management employees with the objective of developing managerial qualities in the employee. The target group is campus hires and lateral hires at junior level. New Leaders Program (NLP) - It is popularly known as NLP and aims at developing potential people managers, who have taken such roles or are likely to get into those roles in the near future. Wipro Leaders Program (WLP) - This program is for middle level leader with people, process, and business development and project management responsibilities. These leaders are like the flag bearers of Wipro values and Wipro way of doing business. Business Leaders Program (BLP) - This is for senior leaders with business responsibility. At this level, people are trained up for revenue generation; and Profit & Loss responsibilities. The program covers commercial orientation, client relationship development, and team building and performance management responsibilities among other things. Strategic Leaders Program (SLP) - This program covers top management employees. The focus is on Vision, Values, Strategy, and Acting, Customer Focus and Building Star Global Thinking

Performers. Wipro ties up with leading business schools of international repute to conduct this program for Wipro leaders. Most IT corporations are becoming familiar with the use of virtual meeting rooms and on-demand information gathering tools. Patni Computers employs a software called Centra which enables them to create a virtual classroom to conduct training for people across multiple locations. According to Sunil Kuwalekar, Senior Vice President Learning & Leadership Development,

A Study of Employee Retention in Wipro Patni Computer Systems Limited, the effectiveness of Centra is almost 90 percent of classroom training. GOOD ENVIRONMENT Factors such as organizational climate & culture, communication system, participation & recognition, recreation, etc form the working environment which is the major factor responsible for establishing a long-term bond between the individual and the organization. A healthy corporate culture of caring for the workers, community and environment will strengthen the socialspiritual capital, leading to a positive work climate of empowered and supported workers. The communication system prevailing in the organization determines the manner in which employees receive information from the management. TCS has an open door policy in which any employee can approach the CEO or the top management with work related problems. Open-house sessions and engagement programmes allow the employees at all levels meet and discuss various work issues. Employees can also take part in one-on-one sessions where they can interact privately with senior management. These sessions are helpful in providing mentorship, as well as understanding real-life issues that colleagues face at work. The queries and discussions are formally recorded and followed up. At Infosys, InSync is the internal communication program focused on keeping the Infoscion abreast of latest corporate and business developments, and equipping him or her to be a "brand ambassador" for the company. This program combines a communication portal with workshops, monthly newsletters, articles, daily cartoons and brainteasers to synchronize each Infoscion with the organization. Feedback system also plays a major role in building positive work culture in organizations as it provides a channel by which the problems and grievances can be heard by the top management and also a medium by which top

A Study of Employee Retention in Wipro management can be updated by the market conditions by the employees which are in direct contact with the market. Wipro as an organization believes in connecting and listening people. The various communication and feedback programmes at Wipro are depicted in Table 3.3. Table 3.3 Communication and Feedback Programmes in Wipro Channel W Channel W is the employee portal at Wipro which creates a de facto Wipro community by allowing Wiproites to interact and disseminate information on things they most cherish. The intranet ensures that the entire organization is wired and there is meaningful exchange of information / views employee communication across domains and and bulletin geographies. Key sections encourage participation through

boards and chat rooms. W10 W10 is a dipstick survey with 10 questions which checks the satisfaction level on issues, which affect the health of the workplace and supervisory effectiveness. The feedback given by employees is shared with management through scorecards. Employee Perception Survey Wipro conduct employee satisfaction surveys every two years. Employees are encouraged to give comments and rank the organization on certain

A Study of Employee Retention in Wipro areas satisfaction drivers. Top

management then prepares a timely action plan to address the areas of concern and task forces are created to focus on improvement areas and implement action. Action plan (Meet your people The W10 scores provide the trigger to managers /supervisors to meet their teams create and resolve issues in which the dissatisfaction

program)

workplace. Skip Level Wipro believe that team feedback is an important parameter of leadership development a as well as team session cohesiveness. A Skip level meeting is formal team feedback facilitated by HR as well as the supervisors supervisor. This is an institutionalized process in Wipro and managers see great merit in it as they get feedback from the team that affects team performance and can make mid-course corrections to improve effectiveness at work.

Source:

Employee

Feedback,

Career

Section,

Wipro

Website,

www.wipro.com Next comes the Recognition & Rewards (R & R) programs which are the most cost effective medium to ensure that talented employees stick to the organization.

A Study of Employee Retention in Wipro

According to Anuradha Purbey, Associate Director (HR), Aviva Life insurance, Since pure monetary means were losing their steam, Corporates came up with innovative alternatives which were high on emotional quotient and low on monetary cost. Explaining how R & R works as a motivating tool, Harish Govind, GM (HR) Blue Star Infotech says, It is a motivator both for the person who is receiving the reward and the others who are witnessing this event. The message goes home is, today its this person, tomorrow it could be you, if you keep up a good performance. Recognition & Rewards comes in many shades: acknowledgement from a senior cash incentives, gift certificates, stock plans, certificates of appreciation, opportunities to attend management workshops and training sessions, membership associations to exclusive clubs, scholarships and paid sabbaticals, holiday packages, etc. Table 3.4: Recognition and Rewards Programmes at Wipro Encore Wipro has a unique package called Encore which is essentially a basket of non-monetary rewards given to motivate employees and recognize excellent levelswork performance. level and The the basket of rewards comes at two individual organization level: Feather-In-My-Cap Dear Boss At individual level one award is Feather-In-My-Cap which is on-thespot recognition of an effort that is important to a project team. Another award is Dear Boss which recognizes the positives of a good

A Study of Employee Retention in Wipro boss. Mastermind Hall of Fame At organizational level one award is Mastermind which notes the most innovative solution or idea in Wipro. Another award is Hall of Fame which recognizes the superlative performers in different roles as well as superlative team performance. Source: Rao, K Raghavendra (2004) Are you rewarding right; Indian Management Further, developing social ties among key employees through recreational activities such as clubs, sports, etc., companies can significantly reduce turnover among workers who are high on affection need. Work-life programmes for employees such as health clubs, yoga & aerobic classes, sports facilities, stress management programmes, cultural initiatives, etc not only directly help organizations in increasing the satisfaction level of employees, but also indirectly contribute to its financial performance by improving the employee capability to perform. To motivate the employees of the company, Wipro organizes different sports tournaments i.e. Cricket, Volleyball, Table Tennis, Badminton etc. For the recreation of the employee, there are company organized gets to gather once in a year with their family. The purpose of the club membership is to meet the other members of the industrial community and interact with them for relation personnel leisure. This facility is provided only to the SMC and above.

A Study of Employee Retention in Wipro JOB SATISFACTION Benefits and high profits are key essentials when it comes to having a high job satisfaction among the companys employees and a low turnover rate. Google Inc., the number one company at which to work for two straight years according to Fortune Magazine, seems to have job satisfaction down to a T. This company goes above and beyond the typical benefits, providing free gourmet meals, onsite oil changes, onsite car washes, a $500 voucher for takeout food after the birth of a child, a free annual ski trip, unlimited sick days, and more. An individual arriving on a Google campus feels like they The joke going around on the Google All of are on a high-scale college campus.

campus says one could gain the campus-15 due to the free food. remains a long list of employee hopefuls.

Googles benefits cause their turnover numbers to stay low while there

Wipro focuses on job satisfaction in order to keep employees with their company and receive a better output from their employees. Wipro realizes that providing flexible timings to employees is not the only way of increasing job satisfaction. Wipro endows responsibilities to its employees and lets the employee utilize his responsibility. Another measure taken is to respect and nurture every employees work life balance. Sessions are conducted on the importance of work life balance. In Wipro, every employee career path is marked out, helping the employee work correctly and therefore giving the company very satisfied employees.

A Study of Employee Retention in Wipro

Chapter 4 Data Analysis and Interpretation

A Study of Employee Retention in Wipro

Chapter 4 DATA ANALYSIS AND INTERPRETATION

This chapter represents an empirical analysis of the data pertaining to study collected through the questionnaires and personal interviews. It presents the study through the use of statistical tools so as to provide validity to the hypothesis and assumptions made. The chapters also presents the interpretations made from the data. INTRODUCTION Hiring is the core activity for any company with more than one employee. Retention, on the other hand, can be viewed as a non-core activity or something that occurs organically. Leadership comments such as people should be happy to just have a job, or we are so busy working with our customers, or we need to reach profitability are focus-stealing excuses diverting leaders from the activities to retain wonderful team members recruited so diligently by the company. Simply put, retention is securing your talent for the long term and advancement of the company. The depth and quality of your retention practices today will distinguish you as a talent winner from the talent losers when the economic recovery begins. It is not unusual to have a talent and recruitment shuffle during recovery as team members seek a more fulfilling opportunity. When you consider the high cost of finding the right team member, it is surprising to see companies not spend more time and effort on retention. If you want to understand what it is really costing your company to lose employees, examine your turnover rates for the last five years. Put a number on the cost of lost intellectual company knowledge, talent and reduced

A Study of Employee Retention in Wipro productivity and then you might reconsider what it really costs to retain great team members. The numbers can be staggering. Creating and maintaining high employee morale is mission critical to retention and more often than not a measure of the ultimate health of an organization. Retaining your best employees ensures customer satisfaction, product sales, satisfied co-workers, effective succession planning and deeply imbedded organizational knowledge and learning. The same goes for attracting great employees. Applicants often ask about a companys culture and professional development opportunities as well as inquire about the support of management. Speaking directly about the company retention program and sharing retention successes reassures the applicant that the company is a fit for them. Jonna Greene, vice president of human resources with La Tortilla Factory in Santa Rosa stated: First and foremost, you have to be the organization that you present to the applicant. If ongoing training and professional development are selling points offered by your company, you better deliver on your promises. A key factor in employee motivation and retention is the opportunity to grow and develop career-enhancing skills. In fact, this is one of the most important factors stated in an applicants decision-making process. METHODOLOGY Data Collection Primary data was collected using questionnaires and personal interview. The respondents were approached personally in order to seek fair and frank responses on the factors affecting retention in the organization. Secondary data has been collected from the internet, published reports and the fact sheets Wipro Technologies and the NASSCOM website. For analysis of the data, rank correlation and chi square techniques have been applied. The primary data was collected through questionnaires. These questionnaires were distributed to 60 employees of Wipro Technologies. Due care was taken

A Study of Employee Retention in Wipro to make sure that the employees filled this with interest and not as a routine. The data was collected only from those employees who has completed at least one year in the organization. The selection of employees is a random sampling for the study. Questions 1 to 6, are related to the employees tenure in the organization and the ratings that he or she would assign to each of the factors considered for this study in view of their longer tenure with the organization Questions 7 and 8 are related to Pay and Benefits, 9 and 10 are related to Career Development & Growth, 11 and 12 are related to Training and Development, 13 and 14 are related to Work Environment and 15 and 16 are related to Job Satisfaction.

Sample The study is of employee retention in IT sector. Since all the companies, irrespective of their ownership and projects undertaken, compete in the same global market, it is deemed appropriate to analyse one of the leading companies. The sample comprises employees from Wipro Technologies, Gachibowli. The basic motive behind choosing this organization is increasing global presence of Wipro in varying aspects of technology solutions.

A Study of Employee Retention in Wipro RESPONDENT PROFILE The data was collected from 30 respondents from the age group of 20 to 30 years and 30 respondents from the age group of 30 to 40 years. Overall experience in the industry: Generally, people stick to the same profession once they start. However, in todays world, a complete shift is career is nothing new. It is important to understand the overall experience of the employee in the industry to understand his needs and what his requirements are. This enables the organization to understand whether the employee is looking for a change or whether he is dedicated to the profession he is in. Chart 4.1: Experience Profile Years in Industry

Experience Profile - Years in Industry

5% 2%

28%

1 to 2 years 2 to 4 years 4 to 6 years 65% More than 6 years

Source: Primary Data (Complied from tabulated responses) Experience in Wipro Technologies: Tabulating the number of years completed by an employee in the organization under consideration, i.e. Wipro Technologies helps to understand how strong the retention management strategies are. Wipro, with its high rate of attrition, is known to have employees leaving the organization within the first 2 years of joining. Moreover, the current trend the market would also state the same.

A Study of Employee Retention in Wipro Rarely, do employees remain in an organization for more than 2 or 3 years. The main reasons that can be attributed to this are better pay and better opportunities available outside. Hence it becomes the requirement of every organization to retain its best talent to ensure that their competitor does not take over the intellectual capital of the organization. Chart 4.2: Number of years of the employee in Wipro

Number of Years in Wipro

2% 5% 1 to 2 years 28% 2 to 4 years 4 to 6 years 65% More than 6 years

Source: Primary Data (complied from tabulated responses) FACTORS AFFECTING RETENTION IN IT SECTOR The problems affecting retention in the IT sector in general was studied from the point of view of each of the employees. The 5 factors taken for this study, viz. Pay and Benefits, Career Growth, Training and Development, Work Environment and Job Satisfaction were introduced to the employees taken for this study to understand their views on the same. The study finds that majority of the employees feel that Career Growth and Training and Development of their skills would be the reason why there generally is attrition in the IT sector. People move from one company to another usually because of the jump in the growth ladder. Sometimes, it is also found that employees leaving due to the lack of training in the organization. Retraining of the skills of the employee is very important. Technology is developing fast, and everyone needs to be updated and trained in the upcoming technological advancements to make

A Study of Employee Retention in Wipro sure that they are at par with others and to ensure fast advancement in the career ladder. Out of the 60 people considered for the study, the chart 4.3 depicts the responses got for the factors affecting retention in IT sector. Chart 4.3 Factors affecting retention in IT sector

Factors affecting Retention in IT sector

20 18 16 14 12 10 8 6 4 2 0 Pay and Benefits Number 17 Career Growth 16 Training and Development 19 Work Environment 6 Job Satisfaction 2

Source: Primary Data (Compiled from tabulated responses) PREFERNCE GIVEN TO DIFFERENT FACTORS BY THE TWO GROUPS When the sample from age group from 20 to 30 years is considered, then study is dealing with individuals who are either fresh into the industry or with experience ranging from 2 to 4 years. The average ranking given by this group was as follows: Table 4.1: Rankings assigned by sample of 20-30 years Lack of Problems Lack of Factors Career with Training and Growth Supervisors Development Rankings 1 2 3 4 5 Source: Primary Data (Compiled from tabulated responses) Pay Package Job Satisfaction

A Study of Employee Retention in Wipro This sample is relatively young in the industry. Hence, for them their pay package and career growth plays a vital role. They are up to date with the technological aspects and therefore would not feel the need for immediate training and development. When the study deals with an age group of 30 40 years, the following is the mean of the rankings given by the individuals. Table 4.2: Rankings assigned by sample of 30-40 years Job Problems Lack of Pay Lack of with Career Package training and Satisfaction supervisors Growth development Rankings 1 2 3 4 5 Source: Primary Data (Compiled from tabulated responses) Factors This sample deals with a group of individuals who have more experience in the industry. For them, career growth plays an important role. They rate training and development after that because for a quick career growth they need to updated with the current case technologies. Hence, higher end training and development should be provided by the company. Basically for retention of employees, the organizations must concentrate on pay package, career growth that is charting out a career plan for the employees, and training and development of skills of the higher talent. This can be shown by the following rank correlation between the two groups. Table: 4.3 Rank Correlation Between the two age groups Factors Age Group 20-30 years 1 3 5 Age Group 3040 years 2 1 3 D=R1 R2 D2 1 4 4 1 4

Pay Package -1 Lack of career growth 2 Lack of training 2 Problem with 4 5 -1 supervisor Job satisfaction 2 4 -2 Source: Primary Data (Compiled from tabulated responses)

A Study of Employee Retention in Wipro The correlation coefficient for the above table would be +0.3 showing that, though there is a low degree of correlation different retention strategies should be adopted for different groups. FACTORS AFFECTING RETENTION IN WIPRO Retention is a costly affair for any company. Wipro, with the highest rates of attrition, needs to work really hard on its retention management strategies. Wipro registered an attrition rate of 20.3% in the year 2008-2009. When an employee leaves an organization, the organization not only looses out on the cost of training the employees but also the loss of intellect from the talent pool. Today, every organization is trying to increase its talent pool. The organizations strive on their intellectual capital and any loss on the same hits the company really hard. This is so because the projects undertaken by the company would require talent of special expertise and loosing that level of expertise would make it difficult for the company to complete the same project or even take up a new one. It might also become difficult for the organization to replace that employee as the time taken to further train the employee would delay the deployment of the assignment the company has taken up. The case with Wipro is no different. Wipro conducts campus recruitments in all major engineering colleges in India. The number of recruits per year is large. However, so is the level of attrition, the number of recruits barely balances the number of cases of attrition per year. These effects the companys cost and the budget for the year concerned. When asked about the reasons why people would generally leave Wipro, the answers were varied. However, most employees agreed on some common parameters. They feel they are not paid at par with industry standards. Some feel that the training does not develop their skills enough. The following graph (Chart 4.4) depicts the responses given by the employees.

A Study of Employee Retention in Wipro Chart 4.4 Factors affecting retention in Wipro

Factors affecting Retention in Wipro

Job Satisfaction Work Environmnet Training and Development Career Growth Pay and Benefits 0 5 10 15 15 19 20 4 17 5

Source: Primary Data (compiled from tabulated responses) It can be basically summarized that the training and development programs need to be given more importance in Wipro. In the changing market, everyone is interested in how much more they can advance their skills so that they have better market value and they can demand higher packages.

Each of the factors considered for the study i.e. Pay and Benefits, Career Growth, Training and Development, Work Environment and Job Satisfaction, is further individually studied as follows.

HYPOTHESIS H0 Pay and benefits, Career Growth, Training and Development, Work Environment and Job Satisfaction are not significant for employee retention.

A Study of Employee Retention in Wipro Pay and Benefits Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. These days, an attractive performance based pay also plays a very important role. This is because it motivates an employee to perform better. The study was conducted on two factors, viz. Performance based pay and the benefits given to the employees. Performance based pay is accepted well by majority of the employees. The component of performance based pay in the pay in the pay structure is increasing year by year. However, on one hand when performance based pay motivates an employee to work to his best, care should also be taken to make sure that the component of performance based pay should not be too stressful for the employee. It might so happen that an employee was unable to perform for a particular period considered due to some personal issues however he is generally at the top of the performance rating. Employee benefits typically refers to retirement plans, health life insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc. Benefits are increasingly expensive for businesses to provide to employees, so the range and options of benefits are changing rapidly to include, for example, flexible benefit plans. Benefits are forms of value, other than payment, that are provided to the employee in return for their contribution to the organization, that is, for doing their job. Benefits keep up the employee morale and encourage the employee to stay back in the organization, as benefits are the perks apart from the actual salary they receive.

A Study of Employee Retention in Wipro Chart 4.5: Responses for Pay and Benefits

Pay and Benefits

35 30 25 20 15 10 5 0 Large Extent Performance Based Pay Benefits 33 20 Some Extent 21 24 Little Extent 6 16

Source: Primary Data (compiled from tabulated responses) Out of the sample size of 60 employees, 33 answered that performance based pay is important to a large extent, 21 to some extent and 6 to little extent. When asked about Benefits given to the employees, 20 employees answered that it is significant to large extent, 24 to some extent and 16 to large extent. 2 value between performance based pay and the benefits given to employees is 7.9326 (>5.99) at 2 degrees of freedom. Thus the null hypothesis is rejected hypothesis and the alternative hypothesis is accepted. This proves that Pay and benefits is significant for retention of employees. Career Growth Career Growth can be defined as a way of success where at every regular interval you must have new challenges to face, new activity to do, new responsibilities to handle and most importantly new process to learn. And if

A Study of Employee Retention in Wipro these things gets saturated at any environment then this indicates that it time to bring about a change. Drive, or focused concentration is generally identified as important to career concentration growth. Although taken for granted by many, concentration is not an easy thing to achieve routinely. Improving productivity of oneself or ones workforce is also often cited as an aim of career growth. Teaching workers to improve Teaching their own career growth and potential is one important part of this. Chart 4.6: Responses for Career Growth

Career Growth
30 25 20 15 10 5 0 Large Extent Career Aspirations Mentoring 27 23 Some Extent 9 25 Little Extent 24 11

Source: Primary Data (compiled from tabulated responses) In Wipro, 27 employees feel their career aspirations have been met to large extent, whereas 24 employees their career aspirations have been met to a little extent. However, when asked about mentoring, 23 said to large extent and 25 said to some extent. 2 value is between these two points is 12.6778 (>5.99), at 2 degrees of (>5.99), freedom, implying that we have to reject the null hypothesis and accept the alternative hypothesis. This proves that career growth is significant for retention of employees.

A Study of Employee Retention in Wipro Training and Development According to the recent review by Harvard Business Review, there is a direct link between training investment of the companies and the market capitalization. Those companies with higher training investment had higher market capitalization. It clearly indicates that the companies which have successfully implemented training programs have been able to deliver customer goals with effective results. It shows that good training results in enhancement of individual performance, which in turn, helps the organization in achieving its business goals. Training is a tool that can help in gaining competitive advantage in terms of human resource. With the growing investment by IT companies in the development of their employees many companies have now started their own learning centers. As an example, Sun has its own training department. Accenture has Internet based tool by the name of My Learning that offers access to its vast learning resources to its employees. Companies are investing in both the technical training, which has always been an essential part in IT industry, as well as in managerial skills development. Companies now keep aside 3-5% of revenue for training programs. As an example, some of the major players like Accenture and Wipro are allocating 7% and 3% respectively of the companys overall revenue.

A Study of Employee Retention in Wipro Chart 4.7: Responses for Training and Development

Training and Development

40 35 30 25 20 15 10 5 0 Large Extent At Par with Industry Standards Equal Opportunity 15 19 Some Extent 29 36 Little Extent 16 5

Source: Primary Data (compiled from tabulated responses) Out of the 60 employees, 29 feel that the training and development programmes are at par with industry standards only to some extent. However, the study reveals that 36 people feel that they are provided equal opportunity to attend training programmes only to some extent. 2 value between these two factors considered is 6.986 (>5.99), at 2 degrees of freedom, which implies that the alternative hypothesis should be accepted. that This proves that training and development is significant for employee retention. Work Environment Given the backdrop of growing levels of attrition and shortage of employable skilled talent, it is felt the best way to address the demand-supply mismatch would be by building soft and intangible skills, better value systems and work culture. Chairman The Ex-Chairman of Satyam Computers, Mr. B. Ramalinga Raju, said building world-class institutions called for better human resource management skills, class human

A Study of Employee Retention in Wipro particularly in a knowledge driven industry. Unlike other countries, India is knowledge-driven uniquely placed. Its strength lies in its large young talent pool. "If one were to analyze the work patterns, nothing much separates one individual from another, and an employee is as good or as bad as the al opportunity and the environment he gets to work. A conducive work environment, where every individual employee is seen as a leader, actually helps build better organisation, something we learnt at Satyam," he said. at Father N. Casimir Raj, XLRI, and Founder Director of LIBA, said, "There has been a clear shift in the values and this has emerged as one of the key areas of concern as this is being increasingly neglected. A new breed of self self-centric approach stands out where the focus is on monetary benefits." pproach Chart 4.8: Responses for Work Environment

Work Environment
40 35 30 25 20 15 10 5 0 Large Extent Appreciation for Work Managers friendly and approchable 37 31 Some Extent 9 22 Little Extent 14 7

Source: Primary Data (compiled from tabulated responses) Out of the 60 employees of Wipro considered for the study, 37 employees responded that they are being appreciated for their work to large extent, whereas 14 employees responded that they are being appreciated to a little extent. 31employees responded that their managers are friendly and

A Study of Employee Retention in Wipro approachable to large extent. A friendly working atmosphere needs to be maintained to ensure a healthy working atmosphere. 2 value between these two factors is 7.0678 (>5.99) at 2 degrees of freedom, which proves that the null hypothesis should be rejected and the alternative hypothesis should be accepted. Hence, a good work environment is significant for retention of employees. Job Satisfaction Job satisfaction describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction and performance; methods include job rotation, job enlargement and job enrichment. Other influences on satisfaction include the management style and culture, employee involvement, empowerment and autonomous work groups. Job satisfaction is a very important attribute which is frequently measured by organizations. The most common way of measurement is the use of rating scales where employees report their reactions to their jobs. Questions relate to rate of pay, work responsibilities, variety of tasks, promotional opportunities the work itself and co-workers. Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature of their work. Job satisfaction can be influenced by a variety of factors, eg, the quality of one's relationship with their supervisor, the quality of the physical environment in which they work, degree of fulfillment in their work, etc.

A Study of Employee Retention in Wipro Chart 4.9: Responses for Job Satisfaction

Job Satisfaction
45 40 35 30 25 20 15 10 5 0 Large Extent Pride in Work Reflection of Work on Org. Growth 41 29 Some Extent 10 25 Little Extent 9 6

Source: Primary Data (compiled from tabulated responses) Out of the 60 employees considered for the study, 41 responded that they employees take pride in their work to large extent. However, when asked about their knowledge about how their work reflects in the organization growth, 29 and 25 employees answered large extent and some extent respectively. respectively. 2 value between these two above factors is 11.4854 (>5.99) at 2 degrees of freedom, which again implies that the null hypothesis is rejected and alternative hypothesis is accepted. This means that Job Satisfaction is significant for employee rete retention.

A Study of Employee Retention in Wipro

Chapter 5 Summary, Conclusions and Suggestions

A Study of Employee Retention in Wipro

Chapter 5 SUMMARY, CONCLUSIONS AND SUGGESTIONS

In the present scenario, world is turning into a global village and the whole globe is reachable from any destination. In this small world even companies are reachable to the people and vice versa. Hence, the various job profiles are available across the globe. In this situation, the biggest challenge for a company is to retain its workforce intact especially the Knowledge Banks. Every company is trying to increase its turnover to the very possible extent. While in all this workout of increasing the turnover, they fail to notice the loss incurred due to the los of employees and the expenses of hiring new employees (Hiring Cost, Training Cost, Productivity Loss etc.) Hiring of new employees normally costs around 35% or more of the average employee salary. Moreover there is risk involved in getting the right employee for the right position with the right attitude. If an employee resigns, then a good amount of time is lost in hiring a new employee and then training him/her. Moreover, recruitment and training cannot assure the same level of efficiency from the new employee. Moreover, one resignation brings about more, which can even bring the process to a standstill. For retention of employees, the HR manager needs to understand the requirements of the employees and at the same time, the employees should be clear about the organizational expectations. The organization should make every employee accountable for his own job so that each employee feels that he is important and significant for the organization which would lead to the smooth functioning of the organization.

A Study of Employee Retention in Wipro SIGNIFICANCE OF THE STUDY Employee retention is important for any organization despite the sector or its specialization in the industry. This is for a multitude of reasons. For starters, there are hidden costs associated with hiring just one employee. For every lost employee, a business will have advertising and administrative expenses to replace that employee such as the following:

time spent reviewing and/or revising the job description; time spent drafting the ad; costs for running the ad; time and resources required for reviewing the resumes; time and resources required for interviewing the applicants; expenses related to background checks; and on-boarding, orientation and training, etc.

The bottom line is that businesses are looking to increase revenues. As mentioned above, the recruiting and hiring expenses to replace just one employee are substantial, which end up cutting into revenues. In addition to that, an organizations experienced employees are more likely to have higher productivity levels, which help bring in increased revenues. On the other hand, an organizations profit and loss statements can be negatively impacted by high employee turnover. In fact, American businesses spend millions of dollars for turnover and recruiting costs. The Society for Human Resource Management (SHRM) says that it can cost up to one and half times an employees starting annual salary to replace that employee. So employers need to strategically and tactically utilize their current talent to compete in this war for talent.

A Study of Employee Retention in Wipro ROLE OF HR IN RETENTION As every person differs from the other, there is no standard recipe to handle an employee and his requirements. However, the reporting HR manager of every employee is his connection to the organization. Researches conducted across several organizations have consistently validated the reality that the HR manager plays a significant role in influencing the There are a number of employee's commitment level and retention.

retention practices HR managers can use to increase the probability that an employee will remain committed to the organization over time. These retention practices reflect the manager's attitude and actual relationship with employees reporting to him. Most organizations ask their managers to place highest priority for client delight, productivity and timely delivery undermining delight of their employees who actually run the show. Good retention practices work on a two way give and take- based on not only what the employee contributes to the organization, but what the organization gives back to the employee. One such tool would be for managers to be accessed on the success rate of retaining employees of their unit as one of the competencies of their Key Performance Indicator (KPI) over a period of time. Finally such performances could be linked with their incentives. When managers are held accountable in this fashion, it ensures that the motivation to examine and enhance retention practices is ever present. While some enlightened leaders balance the needs of the organization with the needs of the employee, the truth is that these leaders are rare. Though managers play a very crucial role in retention, they do not control all of the factors that can affect attrition. Therefore, the second component represents the organizations responsibility in the retention equation. An ideal combination of the Organizational Retention Systems and managers positive attitude towards employee retention, when working in a complimentary manner rather than contradictory manner is the best recipe for achieving organizational objectives.

A Study of Employee Retention in Wipro NEED FOR THE CURRENT STUDY A study of employee retention is Wipro is essential for the following reasons: Wipro is emerging as one of the top global player in the IT sector The number of projects in Wipro has been increasing the last two years Wipro has the highest attrition rate in the IT industry at 20.3% The cost of attrition is very high and eats into the profits of the company The loss from the knowledge pool is very high and can lead to bringing projects to a standstill

The cost and time involved in replacing an employee is very high and it might effect the reputation of the company OBJECTIVES OF THE STUDY

3. To study the factors that affect employee retention in IT sector 4. To study the attributes that can be adjusted to retain employees in Wipro Technologies. HYPOTHESIS H0 Pay and benefits, Career Growth, Training and Development, Work Environment and Job Satisfaction are not significant for employee retention. METHODOLOGY The primary data was collected through questionnaires. These questionnaires were distributed to 60 employees of Wipro Technologies. Due care was taken to make sure that the employees filled this with interest and not as a routine. The data was collected only from those employees who has completed at least one year in the organization. The selection of employees is a random sampling for the study. Questions 1 to 6, are related to the employees tenure in the organization and the ratings that he or she would assign to each of the factors considered for this study in view of their longer tenure with the organization

A Study of Employee Retention in Wipro Questions 7 and 8 are related to Pay and Benefits, 9 and 10 are related to Career Development & Growth, 11 and 12 are related to Training and Development, 13 and 14 are related to Work Environment and 15 and 16 are related to Job Satisfaction. SAMPLE The study is of employee retention in IT sector. Since all the companies, irrespective of their ownership and projects undertaken, compete in the same global market, it is deemed appropriate to analyze one of the leading companies. The sample comprises employees from Wipro Technologies, Gachibowli. The basic motive behind choosing this organization is increasing global presence of Wipro in varying aspects of technology solutions. TECHNIQUES OF ANALYSIS The comparative study is done with the help of 2. Mean and coefficient of correlation have also been used for the analysis of the link between the two groups of employees of the organization. SOURCES OF DATA The data required for the study is collected both from primary and secondary sources. Primary data is collected by conducting personal interviews, discussions with the employees and managers considered for the study. In addition, data was collected through questionnaires, feedback, observations etc. Secondary data includes reports and records of the organizations for the past two years and the data collected from the NASSCOM website on the rates of attrition. Research studies conducted by individuals, institutions and agencies, and various other journals were considered. PERIOD OF THE STUDY The study aims to understand the attributes affecting employee retention in Wipro. The study spread over a period of two years i.e., from 2007 to 2009.

A Study of Employee Retention in Wipro However, data pertaining to the period before that considered for the study was also looked into depending upon the requirement for the study. SCOPE OF THE STUDY The data required for the present study was collected using questionnaires. The data was collected from the employees of Wipro Technologies, Gachibowli across the age group of 20 to 40 years. Wipros global IT services business has 97,552 employees, including 16,500 in the BPO division. There are 2645 employees in Wipro, Hyderabad and 1453 employees in Wipro Technologies, Gachibowli. The sample represents a 4.1293% of the total headcount. CHAPTERISATION Chapter I INTRODUCTION

The first chapter being introductory helps in understanding the importance of HRM and Employee Retention in the IT industry. This chapter provides information regarding the objectives, methodology, scope, statistical tools appointed, chapterisation and also limitations. A major part of this chapter consists of the literature review. Chapter II TALENT MANAGEMENT IN IT SECTOR

This chapter was taken up keeping the pressing problem of talent management in mind. The chapter covers aspects and limitations of retention in the IT sector and the factors affecting the same.

Chapter III

FACTORS EFFECTING EMPLOYEE RETENTION IN WIPRO

Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization

A Study of Employee Retention in Wipro as well as the employee. This chapter examines the factors affecting retention and the steps taken by Wipro to tackle these factors. Chapter IV DATA ANALYSIS AND INTERPRETATION

In current global market, companies are composed by competitors, regardless of industry. To develop a competitive advantage, it is important that firms truly leverage on the workforce as a competitive weapon. This chapter analyzes the various factors affecting employee retention and the attributes that can be adjusted to improve employee retention. It also presents a comparative study between employees of two different age groups and the different requirements of the two groups. Chapter V SUMMARY, CONCLUSIONS AND SUGGESTIONS

This chapter being the last chapter gives conclusions and suggestions and briefly explains the objectives, methodology, findings and limitations of the study. This chapter also gives the scope for further study. FINDINGS FROM THE STUDY 65% of the sample consisted of employees who have completed only 1 to 2 years in Wipro, whereas only 5% of the sample was in the 4 to 6 year bracket and a mere 2% were above 6 years. This clearly indicates that the average tenure of employee in organization is not very high. According to the sample considered for the study, the factors affecting retention in IT sector were quantified as follows: Lack of proper training and development (31.66%) Pay and benefits not at par with industry standards (28.33%) Lack of Career Growth (26.66%) Conducive Work Environment (10%) Lack of Job Satisfaction (3.33%)

Whereas the factors affecting retention in Wipro were quantified as follows: Lack of proper training and development (28.33%) Pay and benefits not at par with industry standards (31.66%)

A Study of Employee Retention in Wipro Lack of Career Growth (25%) Conducive Work Environment (6.66%) Lack of Job Satisfaction (8.33%)

This shows that the training and development programmes are not at par with the other players and probably suggests that the pay and benefits are not at par with industry standards. These factors can lead to a lower employee morale leading to low level of job satisfaction. From the study conducted it was found that the expectations and requirements of employees who are in the age group of 20 to 30 yrs and 30 to 40 yrs are different. This is because; the employees who are in the age group of 20 to 30 years are relatively new to the organization. The group who are in the 30 to 40 age bracket are usually people who have a wider range of experience ranging anywhere between 6 to 10 years. The finds that though the requirements of the two groups are different a small level of correlation (r=+0.3) exists between the groups showing that though different, there are minor similar requirements like that of career growth. Findings as per hypothesis H0 Pay and benefits, Career Growth, Training and Development, Work Environment and Job Satisfaction are not significant for employee retention. The test of chi square applied to the data collected in the study helped to reject the null hypothesis and accept the alternative hypothesis; proving that Pay and benefits, Career Growth, Training and Development, Work Environment and Job Satisfaction are significant for employee retention. The study shows that performance based pay is a very strong factor for employee retention with more than 50% of the sample agreeing to the same. The responses regarding benefits were rather varied. The study reveals that people who feel their career aspirations have been met and people who feel they havent follows almost a 1:1 ratio, with 27 feeling the former and 24 feeling the latter. This could be due to the difference in age

A Study of Employee Retention in Wipro groups considered. Whereas, the study clearly shows that mentoring is a strong factor for career growth and hence for retention. From the study it was learned that about 50% of the respondents felt training programmes were at par with industry only to some extent. 60% of the respondents felt that they were being given equal opportunity to attend the training programmes of their choice only to some extent. This shows that majority of the employees are not very satisfied with the training programmes. More than 60% of the employees considered for the sample feel that they are being appreciated for their work however only 50% feel that their managers are friendly and approachable. The managers, create a healthy working atmosphere for the employees which in turn helps the employees to approach them for their problems. Out the sample, about 66.66% of the employees take pride in the work they do, however only a small fraction of the employee understand how their work reflects in the overall growth of the organization. Job satisfaction forms an important component of employee retention as unsatisfied employee tends to look for different places to work with.

CONCLUSIONS A huge fraction of the people have less experience only one to two years in Wipro and hence high level of importance should be given to employee retention All the factors viz. Pay and Benefits, Career Growth, Training and Development, Work Environment and Job Satisfaction are important for employee retention. The study of rank correlation between the two groups show that there is a small level of correlation which implies the needs of the two groups are different however, the small level of correlation implies the importance of career growth in both the sections of employees

A Study of Employee Retention in Wipro For retaining a talent from an age group of 20 to 30 years, the HR manager must concentrate more on career growth and charting out a good career plan When it comes to an employee of an age group of 30 to 40 years, more emphasis must be paid on training and development as without training, this cadre of employees may not be at par with the current technology. Performance Based Pay should be given utmost importance. Employees are happier if they are paid according to their performance and this encourages them to perform better Benefits are important for retention however with varied opinions. HR managers must give special importance in charting out the career plans for the employees Career Aspirations of all employees have not been met uniformly. Mentoring in Wipro is pretty successful as most employees feel its being done in the right direction. Training at Wipro is not at par with industry standards as majority feel its so only to some extent. The data reveals that equal opportunity is not being given to all employees to attend the training programs of their choice. More than 60% feel they are being appreciated for their work, which shows the rewards and recognition programmes are strong. The opinions regarding the friendliness and approachability of managers seem varied Almost 67% take pride in the work. However, employees do not know how their work reflects in the growth of the organization.

SUGGESTIONS The younger group of employees should be well appreciated to increase their morale to enable them to work better. The experienced group of employees should be exposed to the current case technology to enable them to move forward and not be redundant in the industry.

A Study of Employee Retention in Wipro The HR managers should check on the career paths drawn for all employees. To retain the good talent who are new to the industry, they must be given a pay package according to industry standards. Employees should be rated correctly according to their performance and paid accordingly. Right type of mentoring should be provided to all employees to help them grow up the career ladder. The career aspirations of all employees should be carefully understood by the HR managers and career paths should be designed accordingly. Training provided should be at par with industry standards. All employees should be provided the training of their choice, and no favoritism should be shown amongst the employees The managers should be friendly and approachable so as to realize the first signs of attrition. If attrition is stopped at the preliminary stage then steps can be taken to curb the same. Employees should be encouraged to take pride in the work they do Employees should be informed about the relevance of their work in the organizational development. LIMITATIONS OF THE STUDY 5. The study is confined only to Wipro Technologies, Gachibowli 6. The study is confined only to Wipro and does not cover other IT companies in its cadre. 7. Pay and benefits, career growth and development, training, work environment and job satisfaction are only some of the few factors that effect employee retention; future studies in this area could possibly include other variables that potentially have an impact on retention on the basis of existing literature. 8. No attempt has been made in this study to do a longitudinal analysis, that is, to explore the influence of these factors on retention over a period of time.

A Study of Employee Retention in Wipro AREAS FOR FURTHER RESEARCH 1. The study can be extended to other organizations both in IT sector and others 2. Comparative study can be undertaken between sectors and within the IT sector 3. Other variables can be included in the study so as to get a broader picture. 4. Further study can include a longitudinal analysis to correctly understand the extent of impact of these factors.

A Study of Employee Retention in Wipro

Annexures

A Study of Employee Retention in Wipro

WHY DO PEOPLE LEAVE AN ORGANISATION?

1. Age : __________ 2. Number of years of experience in current organization : _________ 3. Total number of years of experience in your profession : ______________ 4. What according to you is the most important in your tenure with an organization a. Pay and Benefits b. Career Development and Growth c. Development of your skills through training d. Conducive work environment e. Job satisfaction 5. According to you why do people generally leave an organization, please rank the factors from 1 to 5, 1 being the highest. a. Pay and benefits___________ b. Career development and growth_________ c. Lack of training to enhance their skills.___________ d. Problem with Work Environment __________ e. Job satisfaction _______ 6. If you were to leave this current job what reasons would contribute to the same: a. Pay and Benefits b. Lack of Career Development and Growth c. Lack of Training and development d. Problem with Work Environment e. Job Satisfaction 7. According to you, Performance based pay is important: a. To little extent b. To some extent c. To a large extent 8. According to you, the benefits provided by your organization would extent your stay with the organization a. To little extent b. To some extent c. To a large extent 9. Have your career aspirations been met or in the process? a. To little extent b. To some extent

A Study of Employee Retention in Wipro c. To a large extent

10. Is the right kind of mentoring given to you for your growth in the organization? a. To little extent b. To some extent c. To a large extent 11. Are the training and development programmes in your organization at par with industry standards? a. To little extent b. To some extent c. To a large extent 12. Are all employees in your organization given equal opportunity to attend the training programmes of their liking? a. To little extent b. To some extent c. To a large extent 13. Do you think you are being appreciated for your work a. To little extent b. To some extent c. To a large extent 14. Do you think your managers are friendly and approachable a. To little extent b. To some extent c. To a larger extent 15. Do you take pride in your work? a. To little extent b. To some extent c. To a large extent 16. Do you know how your work reflects in the overall growth of the organization? a. To little extent b. To some extent c. To a large extent

A Study of Employee Retention in Wipro

Bibliography

A Study of Employee Retention in Wipro

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WEBSITES 1. www.wipro.in 2. www.citehr.com 3. www.talkstats.com