1.

1 Introduction to the study

Entrepreneurs know how competitive hiring is in the business sector and the fear of employees
jumping the fence to join a competitor is more payable now more than ever. It is hard to find
good employees but it is even harder to promote company loyalty. Once you find top quality
people to work for you, you have to ensure that you can keep them because retaining quality
employees is one of the keys to ensure the growth of your business.
Employee retention refers to the various policies and practices which let the employees stick to
an organiation for a longer period of time. Every organiation invests time and money to groom
a new joinee, make him a corporate ready material and bring him at par with the e!isting
employees. "he organiation is completely at loss when the employees leave their job once they
are fully trained. Employee retention takes into account the various measures taken so that an
individual stays in an organiation for the ma!imum period of time.
Effective employee retention is a systematic effort by employers to create and foster an
environment that encourages current employees to remain employed by having policies and
practices in place that address their diverse needs. # strong retention strategy becomes a
powerful recruitment tool.
$etention of key employees is critical to the long%term health and success of any organiation. It
is a known fact that retaining your best employees ensures customer satisfaction, increased
product sales, satisfied colleagues and reporting staff, effective succession planning and deeply
imbedded organiational knowledge and learning.
Employee retention matters as organiational issues such as training time and investment& lost
knowledge& insecure employees and a costly candidate search are involved. 'ence failing to
retain a key employee is a costly proposition for an organiation. (arious estimates suggest that
losing a middle manager in most organiations costs up to five times of his salary.
Intelligent employers always realise the importance of retaining the best talent. $etaining talent
has never been so important in the Indian scenario& however, things have changed in recent
years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the
1
business, or even for the second or the third best. $etention of key employees and treating
attrition troubles has never been so important to companies.
In an intensely competitive environment, where '$ managers are poaching from each other,
organiations can either hold on to their employees tight or lose them to competition. )or gone
are the days, when employees would stick to an employer for years for want of a better choice.
*ow, opportunities abound.
It is a fact that, retention of key employees is critical to the long%term health and success of any
organiation. "he performance of employees is often linked directly to quality work, customer
satisfaction, and increased product sales and even to the image of a company. +hereas the same
is often indirectly linked to, satisfied colleagues and reporting staff, effective succession
planning and deeply embedded organiational knowledge and learning.
Employee retention matters, as, organiational issues such as training time and investment, costly
candidate search etc., are involved. 'ence, failing to retain a key employee is a costly
proposition for any organiation. (arious estimates suggest that losing a middle manager in most
organiations, translates to a loss of up to five times his salary.
Employee retention is a process in which the employees are encouraged to remain with the
organiation for the ma!imum period of time or until the completion of the project. Employee
retention is beneficial for the organiation as well as the employee.
Employee retention has become a major concern for corporate in the current scenario.
Individuals once being trained have a tendency to move to other organiations for better
prospects. ,ucrative salary, comfortable timings, better ambience, growth prospects are some of
the factors which prompt an employee to look for a change. +henever a talented employee
e!presses his willingness to move on, it is the responsibility of the management and the human
resource team to intervene immediately and find out the e!act reasons leading to the decision.
2
$etention involves five major things-
.ompensation
/upport
0rowth
$elationship
Environment
)igure no.1 1ey areas in employee retention
"o keep employees and their satisfaction levels high, every organiation needs to implement
three $2s of employee retention .$espect , recognition, and rewards.
$espect is esteem, special regard, or particular consideration given to people.
$ecognition is defined as 3special notice or attention4 .5any problems with retention and morale
occur because management is not paying attention to people2s needs and reactions.
$ewards are the e!tra perks you offer beyond the basics of respect and recognition that make it
worth people2s while to work hard.
+hen the organiations implement the three $2s approach it reduces turn over and enjoy the
increased productivity, reduced absenteeism.
3
Employees do not leave organiation without any significant reason. "here are certain
circumstances that lead to their leaving the organiation.
"he process of retention is not as easy at it seems. "here are so many tactics and strategies used
in retention of employees by the organiations. "he basic purpose of these strategies is to
increase employee satisfaction, boost employee morale hence achieve retention.
1.6 *eed for the study
4
In today2s scenario employee2s turnover is increasing day by day which affects the growth of the
company. Employee2s turnover causes huge loss for the company, which invests a lot of money
in training them. "he study helps to identify the factors causing dissatisfaction to the employees
and thereby reducing employee turnover.
1.7 Objectives of the study
"o study the employee retention strategy followed at '..89,
"o identify the factors causing dissatisfaction of the employees at '..89,.
1.: /cope of the study
"he study is confined to 'industan .oco .ola 8everages 9rivate ,imited located at 5oulali.
1.; /ources of data
"he data was collected from primary sources and secondary sources.
9rimary data- /tructured questionnaire
/econdary data- "he secondary data was collected from books , company websites and
websites.
1.< $esearch methodology
"otal population - 6<7
5
"arget population - <;
/ample sie - 7=
/ample element - E!ecutives >7=?
/ample unit - '$%1, /tores%;, 9roduction%@, Auality%B, /hipping%;, 5aintenance%:
/ample method - /tratified $andom /ampling 5ethod
E!tent of study : '..89,, 5oulali branch
"ime period - =;%=:%6=16 to =B%=:%6=16
1.7 ,imitations of the study
"he information collected may be biased.
"ime factor is considered as a main limitation.
"he study was confined to a very short period.
+hile analysing the factors causing dissatisfaction responses have been fabricated.
6.1 Industry profile
6
)ood and beverage- 8ackground
"he food and beverage industry is composed of companies involved in processing raw food
materials and manufacturing, packaging or distributing food or drink C the steps in food
production after harvest and before retail purchase. "he beverage segment is composed of
alcoholic and non%alcoholic beverages. )or alcoholic beverages, beer, cider and other flavored
alcoholic beverages make up the bulk of the market, followed by wine and spirits. In the non%
alcoholic segment, soft drinks far outsell coffee, tea, juice and water. "he food and beverages
industry is considered a mature industry& it is very competitive and relies strongly on advertising
to promote brands.
"he food and beverage industry used to be considered the production of food, which is now
distinguishing agriculture as a separate industry. *ow, the industry is much more focused on
technology and mechanical manipulation of raw foods to create more value%added food products.
$eliance on transport has increased as the industry has developed to be more global in nature,
with most food products being most offered by a handful of globe%spanning corporations.
'istory
In the late 1@
th
and early 1D
th
centuries, the industrial $evolution contributed largely to the
production and distribution of food and beverage. "he results were the ability to mass produce
food products at a lower cost and improved transportation, which enabled many food products to
be enjoyed in regions where food cannot be grown.
Euring wartime, the food and beverage industry shifted, as food is often a precious commodity.
9rices were determined by availability and regulation. #fter +orld +ar I, the F./. )ederal
0overnment established the F./. )ood #dministration to regulate the contents of domestically
produced food. 5ost countries involved in +orld +ar II rationed food and regulated prices in
order to stabilie the economy.
7
#fter +orld +ar II the food and beverage industry began branding products through advertising
to increase popularity. In many instances, product advertising costs more than the cost of
production, and branding is partially responsible for the emergence of radio and television. "he
cola wars, a campaign of mutually%targeted television advertisements and marketing campaigns
between soft drink manufacturers. "he coca%cola company and 9epsi.o, was one e!ample of
e!tensive advertising.
In the 1D;=s and 1D<=s, the concept of franchised restaurants was promoted. "his enabled
franchisers to e!pand with limited capital investment. One such franchise is 5cEonalds,
currently the world2s largest chain of fast food restaurants. /ince the 1D@=s there were many
mergers and acquisitions of food and beverage companies. "his trend continues today, with many
companies actively buying and selling brands. /ome of the industry2s biggest growth spurts have
come from mega%mergers between food industry giants. )or e!ample, 1raft foods and *abisco
and 0eneral 5ills and 9illsbury were two major mergers.
India2s )ood and 8everage Industry is valued at $s. 7;@: billion India produces above <==
million tones of food products every year and is one of the major producers of food in the world.
#ccording to 5c1inney2s report, the total beverage consumption will grow at DG over the ne!t
6= years. Of which, alcoholic beverage and non%alcoholic beverage will see it spurt of D.<G and
@.@G respectively.
,eaders
In the food and beverage industry, diversification, whether into many different types of food or
beverage or into different preparations, has been shown to be a key to ensuring future growth.
*estle, the largest food and 8everage .ompany in the world, unilever and 1raft foods have all
diversified well and performed well, becoming leaders in their market. "he non% alcoholic
beverage segment is led by coca%cola with 9epsi.o and .adbury /chweppes.
8
"he key players currently operating in Indian )ood and 8everages Industry includes, Eabur India
,imited, 0odrej Industries ,imited, 'industan Fnilever ,imited, 8ritannia Industries ,imited,
I". ,imited, *estle, .oca%.ola, 9epsi.o, Inc., .adbury /chweppes 9,., )uture 0roup, $90
Enterprise and 0odrej #grovet ,imited.
"rends
$ecently, companies have spent a lot of money on researching consumers eating habits and
preferences. 5ore people are dining out and food producers are finding themselves devoting
more attention to products designed for restaurants, vending machines, and other food service
providers.
#nother trend in the industry has been the development of health foods& such has those
containing less trans%fat or fewer calories, or those containing only organic ingredients. 8ottled
water has been well established in the market as many beverage companies, and enhanced waters
containing vitamins or supplements are gaining popularity, Energy drinks, such as $ed 8ull,
have also burst forth onto the scene.
$ising costs have become an issue in the )ood and 8everage Industry, as the raising cost of
petroleum cause a twofold increase in cost for companies in the )ood Industry& costs have
increased at the agriculture end, which increases raw materials costs for food processors who
also deal with increased production and transportation costs at their end. /ince the Industry is so
competitive, it is difficult for these companies to raise their prices accordingly and profit margins
have suffered as a result. Auality control and assurances are vital to this Industry )ood safety
programs have been adopted recently as issues of chemical and bacterial contamination and new
food%borne pathogens remain a public health concern.
.hallenges in the )ood and 8everage /ector
9
9oor infrastructure
,ack of adequate facilities for storage, transportation and cold chain facilities
*o common food law
)ood standards are confusing and contradictory
'igh cost of raw material and packing material and high railway freight put pressures on
margins
Eifferent rules and regulations and licensing are defined for different commodities
0rowth prospects
+ith increase in disposal income of consumers, growing awareness among consumers about
health products, rapid urbaniation and increasing popularity of convenience foods. )ood and
8everage sector is e!pected to grow at a high rate. "his sector holds a huge potential to grow
because of the increase in advertisement spending, awareness campaign about products in urban
as well s rural areas and large scale transformation.
India2s )ood and 8everage Industry is valued at $s. 7;@: billion. India produces above <==
million tones of food products every year and is one of the major producers of food in the world.
)uture outlook
3Indian )ood and 8everages forecast >6==B%6=11?4 report gives an in%depth analysis of the
present and future prospects of the Indian )ood and 8everages Industry. It looks into the Industry
in detail with foci on organied food retailing, consumer food purchasing behavior, food
processing Industry and packedHconvenience food industry.
1ey findings
It is e!pected that fruit consumption will increase at a .#0$ of :.77G for the period
spanning from 6==B%6=11
10
"he processed%food market is the main focus for foreign companies as this segment is
underdeveloped and presents enormous potential for growth
$ising household incomes, increasing urbaniation, changing lifestyles and the rapid
growth of the private%sector and diary%processing Industry should lead to greater demand
for value%added, milk based products, such as processed cheese, table butter and ice
cream.
.offee consumption is likely to e!pand at a rapid rate during the forecasted period. It is
e!pected that it will increase at a rate of 1=.=;G for the period spanning from 6==B%6=11
.onsumption of soft drinks e!panded at an average rate of 11G by volume during 6==6
to 6==<, and this is forecast to accelerate only slightly to 16G during 6==B to 6=11
9roduction of branded snack food is estimated to be growing at an annual rate of 6=G in
coming 6%7 years.
6.6 .ompany 9rofile
'industan .oca%.ola 8everages 9rivate ,imited
Introduction
11
"he coca%cola company traces its beginning to 1@@<, when an #tlanta, 0eorgia 9harmacist, Er.
Iohn pemberton, began to produce .oca%.ola syrup for sale in the fountain drink. 8enjamin ).
"homas secured the e!clusive rights to bottle and sell .oca%.ola for most of the Fnited /tates
from .oca%.ola .ompany.
"he .oca%.ola bottling system continued to operate as an independent local business until the
late 1DB=s and early 1D@=s when, for economic and other reasons, bottling franchise ownership
began to consolidate. "he company offered its stock in the *ew Jork /tock E!change on
*ovember 61
st
, 1D@<, in the largest initial public offering made up to that date.
.oca%.ola India
.oca%cola returned to India after 1< years, in 1DD7. "he brand promotion was between 1DD:%D<.
"he bottling acquisition occurred between 1DDB%DD. Its guest for profitability started from 6===
onwards. In Indian coke have their concentrate plants at pune producing 1= brands. Its .ompany%
owned bottling operations are at si! operating regions. 6D operating areas with 6< plants, 1=
0reen fields and 7=== associates. It enjoys a business of over $s. 7=== cores in India.
#bout the plant
'industan .oca%.ola 8everages 9vt. ,td at 5oula%#li is one of the main bottling units of .oca%
.ola in India. "o understand the plant operations one has to have awareness of the plant area and
capacity.
9lant #rea
"otal area - D.B; acres
8uilt%up area - D.6B; acres
0reen 8elt - 1=.;: acres
12
Fndeveloped area - 7.D acres
9roduction ,ine
,ine I % $08
,ine II % Iuice ,ine
,ine III % $08 ,ine
,ine I(% 9E" ,ine
9ackages 9roduction
$08 % 6==ml
$08 % 7==ml
$08 % 1===ml
Iuice % 6;=ml
9E" % ;==ml,<==ml,1;==ml
13
)igure. 6 )low .hart of 8everage 5anufacturing 9rocess
#ll the plant operations can be broadly classified into four main areas namely
+arehouse
9roduction
9rocess
Ftilities
#part from these the general functions such as '$, )inance, and /ales etc e!ists on coordination
with them. +e begin e!amining the plant layout at the storage area.
14
+arehouse-
In the bottling plant a warehouse is used to store both empty and filled bottles. "he warehouse is
generally located adjacent to the production line to minimie material handling. "he demand
analysis carried out by the sales department acts as an input to the shipping department. "hey in
turn estimated the volume of production based on the number of empty and filled bottles. "he
empty bottles in the warehouse are stored according to pack and flavor and send to filling.
Eepalletising-
#fter sorting, the cases of empties are placed on a case conveyor. 9lacing cases on the conveyor
may be done manually or with the help of depalletier.
Fncasing-
"he bottles are then uncased for inspection. "his also can be done manually but here an uncase is
incorporated.
9re%inspection-
Empty returns are inspected for broken and chipped areas and for e!cessively dirty bottles before
they are washed.
8ottle washer-
"he washer is the largest single piece of equipment on the bottling line. In most plants, washer is
located spaciously to ensure easy access to all sides of the washer. 'ere bottles are washed,
rinsed and drained.
Empty bottle inspection-
"he bottles are once again inspected after they are washed and before they are sent for filling.
15
)iller-
"his is the heart of the production line and here the beverage is filled into the empty bottles.
8everage is the final product made from the raw material through a series of processes. "he
general procedure is
$aw syrup $eady syrup 8everage
$aw syrup-
$aw syrup is prepared by adding raw materials such as sugar, treated water and activated carbon.
In this process the mi!ture is heated to about @;..
$eady syrup-
$eady syrup is pumped to the tanks in the ready syrup room after the syrup is cooled to about
6=%6; .. here the concentrate or the beverage base is added to it. # small amount of .O6 is also
added to avoid stagnation of the ready syrup in the supply lines.
"he concentrate and beverage bases mentioned here are manufactured by the .oca%.ola
.ompany. .oncentrate imparts the distinctive taste and colour to the product .oca%.ola and the
beverages bases provided the same to other soft drinks products of the .oca%.ola .ompany.
5i!er-
"he ready syrup from the ready syrup room is pumped to the mi!er where it is mi!ed with .O6
and water according to the prefi!ed requirements. "hese values remain universally constant. "he
mi!ture now is known as the beverage.
.arbonation tank-
"he beverage is then chilled or cooled as it is observed that the solubility of .O6 is higher at
lower temperatures. "his mi!ture is sent to the carbonation tank.
.rowning-
"he bottles that are filled with the beverage in the filler are crowned in this process.
16
Eate coding-
"he date of manufacturing, time and 5$9 are printed on the bottle by using the coding machine.
)illed bottle inspection-
"he filled bottles are once again inspected finally for the level of fill and the coding.
.aser-
"he cases which are obtained by uncasing the empty bottles are sent to the case cleaner which
they are cleaned. "he case now packs the filled bottles in to the cases.
9alletiing-
"he case are now placed on a case conveyor by either using a palletier or manually >here done
manually? and sent to the warehouse.
+arehouse-
"he filled bottles cases are stored in the warehouse and are further sent for distribution.
Auality lab-
"he beverage so produced should match some prefi!ed standards. In order to test the quality of
the beverage manufactured, regular sampling and testing is done. "he quality lab is placed near
the production line to make sampling convenient.
8oiler-
It is part of the plant utilities with supplies steam to various part of the plant such as raw syrup
room, bottle washer, .I9.
.hilling plant-
"his provides all the refrigeration required in the plant mainly for cooling the beverage, raw
syrup.
17
#ir compressor-
"his system provides compressed air for all the pneumatic needs of the plant. /ome such areas
are bottle washer, filler, caser, uncase.
.O6-
"he carbon dio!ide is stored in the plant so that it is available to the mi!ed in the beverage. 8ulk
storage is generally outside the plant and it is piped to the bottling room.
+"9-
+ater is required at many stages in the plant operations. In the beverage manufacturing process
we make use of treated water. "his is manufacturing by systemied water treatment techniques.
In addition to this soft water is supplied for sanitation, boiler.
E"9-
#n effluent treatment plant in the plant premises treats the waste water coming from various
parts of the plant such as bottle washer, syrup room, +"9, before it is released into the
environment.
.I9-
# clean% in%place >.I9? system is most common way to clean closed systems of pipeline as well
as pieces of equipment. "his is mainly needed at the syrup rooms and filling equipment such as
filler, cooling equipment, carbonation equipment, pumps, lines. In addition to the above some
others utilities also contribute to the beverage manufacturing process. /ome of them are forklifts,
transformer, E0 /E".
Interesting )acts about .oca%.ola
.oca%.ola was first advertised as a remedy for headaches and e!haustion
.oke has been advertised in televisions for ;= years
"here are 6B different varieties of coke made by .oca%.ola
18
)irst bottle of coke was sold 16: years ago on @
th
5ay 1@@< in #tlanta
.oca%.ola is recognied by D:G of world2s population
#ppro!imately 1=,:;= brand drinks are consumed around the world each second
.oca%.ola sold only n6; bottles in the 1
st
year. "oday they sell around 1 billion
bottles a day
5anagement 9hilosophy
.orporate #rea
"he major concept of management philosophy is to remain in the beverages industry and not to
diversify into other areas. "he management believes in investing in non capital%intensive areas.
In fact the beverage industry requires little capital and produces ma!imum returns. "he returns
from the foreign markets are tapped to the most.
)inancial #rea
"he corporate objective is to increase the shareholders value. "he management believes that in
increasing the shareholders value it requires consistent growth in financial results complemented
by effective use of the cash flow.
5arketing #rea
"he management is committed to superior market place e!ecution. "his is achieved by
decentraliation operating structure that places the responsibilities authority and accountability as
close to the customer and consumer as possible. #dvertising has placed an important role in the
success of products.
"he various punch lines adopted by the .oca%.ola .ompany for different years as one of their
advertising strategy are as follows-
19
Jear 9unch ,ine
1D6D "he 9ause "hat $efreshes
1D7< It2s "he $efreshing "hing "o Eo
1D:6 It2s "he $eal "hing
1D:: 0lobal 'igh /ign
1DB1 I +ould ,ike to buy the world a coke
1DB< .oke #dds ,ife
1D@6 .oke Is It
1D@< .atch the wave
1D@D Jou .an2t beat the feeling
1DD7 #lways .oca%.ola
1DD@ #lways refreshing
"able 1 punch lines
(ision
(ision serves as a frame work for road map and guides every aspect of business by describing
what business need to accomplish in order to continue achieving sustainable, quality growth.
9eople- be a great place to work where people are inspired to be the best they can be.
9ortfolio- bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people2s desires and needs.
9artners- nurture a winning network of customers and suppliers together create mutual,
enduring value.
9lanet- be a responsible citien that makes a difference by helping build and support
sustainable communities.
9rofit- ma!imie long%term returns to share owners while being mindful of overall
responsibilities.
9roductivity- be a highly effective, lean and fast moving organiation.
5ission
$oad map starts with mission, which is enduring. It declares purpose as a company and serves as
a standard against which actions and decisions are weighed.
20
"o refresh the world.
"o inspire moments of optimism and happiness.
"o create value and make a difference.
+inning culture
+inning culture defines the attitudes and behaviours that will be required to make 6=6= vision
reality.
(alues
(alues serve as a compass for actions and describe how to behave in the world.
,eadership % the courage to shape a better future.
.ollaboration C leverage collective genius.
Integrity C be real.
#ccountability C if it is to be, it2s up to me.
9assion C committed in hearten mind.
Eiversity% as inclusive as our brands.
Auality C what we do, we do well.
9roducts
"he carbonated market
)or the local market in India .oke offers following brands
21
5aaa
"hums up
.oke
,imca
/prite
)anta
1inley
"he non C carbonated market
5inute maid Coffers froen concentrated fruit juice launched in 1D@@
Ice tea C varied flavours and sweetness in a line of ice teas was created with cokes joint
venture with *estle.
/un fill% a powered soft drink mi! launched in 6==D for Indian local market.
1inley C packaged drinking water.
"he brand
"he .oca%.ola consistently ranks first in the world2s most valuable brands. "he brand value is
about 7D billion dollars. "his is the greatest heritage of the company. #s far as brand
management is concerned, it is found that .oca%.ola ranks third only after 5icrosoft and ,ouis
(uitton.
)our basic segments
$efreshment
22
.oca%.ola, "humps up, ,imca, )anta, sprite
$ejuvenation
$eady to drink tea and coffee% *estea and 0eorgia gold.
'ealth and nutrition
Iuices and milks C5inute maid, sun fill
$eplenishment
+ater and /ports drinks C kinley.
#p region
.onsists of five operating locations C 5oula C ali, #meenpur, *ellore, (ijayawada and
(isakhapatnam having the turnover of over B;= crores with 7 plants , 6 0reen fields and
1;== associates.
23
24
)igure 7 9roducts of coca cola
Introduction
Employee retention refers to policies and practices companies use to prevent valuable
employees from leaving their jobs. 'ow to retain valuable employees is one of the biggest
problem that plague companies in the competitive marketplace. *owadays, businesses often find
that they spend considerable time, effort, and money to train an employee only to have them
develop into a valuable commodity and leave the company for greener pastures. In order to
create a successful company, employers should consider as many options as possible when it
comes to retaining employees, while at the same time securing their trust and loyalty so they
have less of a desire to leave in the future.
5eaning
Employee retention involves taking measures to encourage employees to remain in the
organiation for the ma!imum period of time. "here is no dearth of opportunities for talented
person. "here are many organiations which are looking for such employees. If a person is not
satisfied by the job heKs doing, he may switch over to some other more suitable job. In todayKs
environment it becomes very important for organiations to retain their employees.
Eefinitions
25
Employee retention is defined as 3a systematic effort by employers to create and foster an
environment that encourages current employees to remain employed by having policies and
practices in place that address their diverse needs. #lso of concern are the costs of employee
turnover >including hiring costs. productivity loss?.
#ccording to 9hillips and .onnell >6==7?, employee retention is the fraction of employees
staying in an organiation in a given period of time. It also states that the retention rate must be
adequate in all important of the job categories.
#ccording to Iennifer #. .arsen >6==;?, employee retention is the number of e!isting employees
keep or stay with their jobs over a fi!ed period of time is known as retention.
$easons for employee turnover
Employees do not leave an organiation without any significant reason. "here are certain
circumstances that lead to their leaving the organiation. "he most common reasons can be-
Iob is not what the employee e!pected to be- sometimes the job responsibilities
don2t come out to be same as e!pected by the candidates. Fne!pected job responsibilities
lead to job dissatisfaction.
,ack of appreciation- If the work is not appreciated by the supervisor, the employee feels
demotivated and looses interest in job.
,ack of trust and support in co%workers, seniors and management- "rust is the most
important factor that is required for an individual to stay in the job. *o supportive
coworkers, seniors and management can make office environment unfriendly and
difficult to work in.
/tress from over work and work life imbalance- Iob stress can lead to work life
imbalance which ultimately many times lead to employee leaving the organiation.
.ompensation- 8etter compensation packages being offered by other companies may
attract employees.
Importance of employee retention strategies
"he process of employee retention will benefit an organiation in the following ways
,oss of .ompany 1nowledge %+hen an employee leaves, he takes with him valuable
knowledge about the company, customers, current projects and past history >sometimes to
26
competitors?. Often much time and money has been spent on the employee in e!pectation
of a future return. +hen the employee leaves, the investment is not realied.
Interruption of .ustomer /ervice% .ustomers and clients do business with a company in
part because of the people. $elationships are developed that encourage continued
sponsorship of the business. +hen an employee leaves, the relationships that employee
built for the company are effected, which could lead to potential customer loss.
0oodwill of the company- "he goodwill of a company is maintained when the attrition
rates are low. 'igher retention rates motivate potential employees to join the
organiation.
$egaining efficiency- If an employee resigns, then good amount of time is lost in hiring a
new employee and then training himHher and this goes to the loss of the company directly
which many a times goes unnoticed. #nd even after this you cannot assure us of the same
efficiency from the new employee.
$etention models
E$.2s $etention model
Employee $etention connection2s decades of applied organiational e!perience indicate
three primary drivers of employee retention.

)igure : E$. $etention 5odel
/timulating +ork
(ariety of assignments
$esources and support provided to do good work
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Opportunity to learn
)eedback on results
Fnderstanding the significance of oneKs personal contributions
5otivational ,eadership
.hampion change and are open to new ideas
Inspire a share vision of organiation direction
5otivate and recognie contributions
Eevelop the capabilities of others
5odel behavior that reflects organiation values
$ecognition L $eward
/ay M"hank youM for a job well done
$einforce desired behaviors
.reate an emphasis and focus on recognition
.elebrate successes
8uild self%esteem
Enhance teamwork
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Integrated /ystem for $etaining Employees

)igure.;
"he Employee $etention .onnection transforms your organiation culture and enhances your
competitive edge through the following five%phased approach-
9hase 1: E$. begins by analying your organiationKs motivation and retention culture
through surveys and focus groups. +hat are the motivating and demotivating aspects of your
cultureN
9hase 6: E$. ne!t designs high%involvement job and work assignments that include-
+ide variety of tasks and skills
Opportunities to learn
#uthority to make decisions
)eedback on results
$esources and support to be successful

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9hase 7: E$. trains supervisors and managers in proven methods of motivational leadership-
Inspiring a shared vision and direction
Eeveloping the capabilities of others
9romoting organiational change
$ecogniing and appreciating employee contributions
/erving as a role model
9hase :: E$. delivers a plan for employee career paths and skill building-
Eesigning career paths, not necessarily up the organiational chart
Identifying core competencies for different career paths
9lanning training and other opportunities to build competencies
5entoring for employee direction
9hase ;: E$. builds a tailored reward and recognition system to fit your organiationKs culture-
Identifying activities, attitudes and contributions to be recognied and rewarded
5atching reward and recognition options to performance contributions
Establishing specific motivational approaches for retaining employees
"he mission of Employee $etention .onnection is to work with organiations to attract, develop
and retain their most valuable resource- their employees.
+ays to Increase Employee $etention
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.ompanies have now realied the importance of retaining their quality workforce. $etaining
quality performers contributes to productivity of the organiation and increases morale among
employees.
)our basic factors that play an important role in increasing employee retention include salary and
remuneration, providing recognition, benefits and opportunities for individual growth.
)igure . <
Employee retention can be increased by inculcating the following practices-
Open .ommunication- # culture of open communication enforces loyalty among
employees. Open communication tends to keep employees informed on key issues. 5ost
importantly, they need to know that their opinions matter and that management is 1==G
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interested in their input.
Employee $eward 9rogram: # positive recognition for work boosts the motivational levels
of employees. $ecognition can be made e!plicit by providing awards like best employee of
the month or punctuality award. 9roject based recognition also has great significance. "he
award can be in terms of gifts or money.
.areer Eevelopment 9rogram- Every individual is worried about hisHher career. 'e is
always keen to know his career path in the company. Organiations can offer various
technical certification courses which will help employee in enhancing his knowledge.
9erformance 8ased 8onus- # provision of performance linked bonus can be made wherein
an employee is able to relate his performance with the company profits and hence will work
hard. "his bonus should strictly be productivity based.
$ecreation facilities- $ecreational facilities help in keeping employees away from stress
factors. (arious recreational programs should be arranged. "hey may include taking
employees to trips annually or bi%annually, celebrating anniversaries, sports activities, et al.
0ifts at /ome Occasions- 0iving out some gifts at the time of one or two festivals to the
employees making them feel good and understand that the management is concerned about
them.
"he basic practices in employee retention strategies are-
'ire the right people in the first place.
Empower the employees- 0ive the employees the authority to get things done.
5ake employees realie that they are the most valuable asset of the organiation.
'ave faith in them, trust them and respect them
9rovide them information and knowledge.
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1eep providing them feedback on their performance.
$ecognie and appreciate their achievements.
1eep their morale high.
.reate an environment where the employees want to work and have fun.
"hese practices can be categoried in 7 levels- ,ow, 5edium and high level
)igure .B
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$etention /uccess 5antra
"ransparent work culture
# transparent work environment can serve as one of the primary triggers to facilitate
accountability, trust, communication, responsibility, pride and so on. It is believed that in a
transparent work culture employees rigorously communicate with their peers and e!change ideas
and thoughts before they are finally matured in to full%blown concepts. It induces responsibility
among employees and accountability towards other peers, which gradually builds up trust and
pride. 5ore importantly, transparency in work environment discourages work%politics which
often hinders company goals as employees start to advance their personal objectives at the
e!pense of development of the company as a single entity.
Auality work
A+, consists of opportunities for active involvement in group working arrangements or
problem solving that are of mutual benefit to employees or employers, based on labor
management cooperation. 9eople also conceive of A+, as a set of methods, such as autonomous
work groups, job enrichment, and high%involvement aimed at boosting the satisfaction and
productivity of workers. It requires employee commitment to the organiation and an
environment in which this commitment can flourish.
9roviding quality at work not only reduces attrition but also helps in reduced absenteeism and
improved job satisfaction. *ot only does A+, contribute to a companyKs ability to recruit quality
people, but also it enhances a companyKs competitiveness. .ommon beliefs support the
contention that A+, will positively nurture a more fle!ible, loyal, and motivated workforce,
which are essential in determining the companyKs competitiveness.
/upport
Organiations these days want to protect their biggest and most valuable asset and they want to
do this in a way that best suits their organiational culture. $etaining employees is a difficult
task. 9roviding support to the employees acts as a mantra for retaining them. Employers can also
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support their employees by creating an environment of trust and inculcating the organiational
values into employees. "he management can support employees directly or indirectly. Eirectly
they provide support in terms of personal crises, managing stress an personal development.
)eedback
)eedback acts as a channel of communication between the employee and his manager. "he
amount of information employees receive about how well or how poorly they have performed is
what we call feedback. It is a dialogue between manager and an employee which acts as a way of
sharing information about the performance. It suggests where the employee performance is
effective and where performance has to improve. 5anagers can provide either positive feedback
or negative feedback to employees. "his feedback helps the employee assess his performance
and identify the improvement areas.
9ositive feedback communicates managerial satisfaction. 9ositive recognition for good
performance boosts up morale of employees and results in performance improvement to a higher
productivity level. It is believed that positive feedback is the only type of feedback that generates
performance above the minimum acceptable level.
*egative feedback obviously communicates manager2s dissatisfaction. 'owever, negative
feedback sometimes make employee to put more efforts to improve his performance. 8ut such
times are very rare. 5oreover this improvement is short term.
/ome managers do not provide any kind of feedback to their employees. Eue to no feedback,
employees may assume that they are performing productively or they may feel that the manager
is satisfied with their performance. /tudies reveal the performance tends be same or even
decreases if no feedback is provided.
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Employee retention strategies followed at '..89,
9ersonal $ecognition
.ompany follow Employee recognition and incentive programs that help to improve morale,
reduce turnover and also can improve productivity, they conduct ongoing recognition
programs that cost very little to administer but add to the motivation in the workplace.
Eepartmental managers have direct contact with their staff every day, so as to determine
which factors keep employees motivated. 5anagers are encouraged to use small personal
tokens of appreciation as a way of motivating employees. 'andwritten letters or certificate
templates that are filled in by hand with the managerKs signature are given to employees as
an ongoing form of recognition. It is a small token that costs very little money, but the effect
of personal recognition from management can be positive.
$ecogniing the Impact of *on%5onetary Incentives
Employees are motivated by more than money. *on%monetary incentives that have a major
impact on employee satisfaction, engagement and retention are given much importance. *on%
monetary incentives include such things as recognition, the opportunity to be involved in
decisions that impact their daily work, opportunities for learning and development, and workHlife
balance and fle!ibility. /ince no two employees will be impacted in the same way, company that
have a variety of ways to reward employees allow their managers and supervisors to be fle!ible
in their implementation of these rewards.
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Ongoing #ssessment and 5odifications
Ongoing assessment of both internal drivers and e!ternal environmental impacts help ensure that
companiesK reward packages serve to drive retention in a positive way. "he effectiveness of
reward packages is impacted by internal and e!ternal factors and it is important for employers to
continually monitor, evaluate and adjust their rewards and benefits packages to ensure that they
continue to meet employeesK needs. .hanges in the competitive landscape, in the economy, in
employee needs and in demographics are all considered for effectively designing the e!isting
packages so as to meet employee needs.
1. 'ow long have you been with the OrganiationN
a? 8elow ;years b? ;%1= ears c? #bove 1; years
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/. *o (ariables $espondents 9ercentage >G?
1 8elow ; years 1D <7
6 ;%1= years =< 6=
7 #bove 1; years =; 1B
"otal 7= 1==
"able.1 E!perience of workers
)igure @ E!perience of workers
Interpretation
)rom the above data it is interpreted that <7G of the employees are having e!perience below ;
years and 6= G of the employees are in between ; to 1= years and remaining are e!perience
above 1= years.
6. Eo you have an opportunity to share your ideas at workN
a? Jes b? *o c? "o some e!tent
/.*o (ariables $espondents 9ercentage >G?
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1 Jes 1= 77
6 *o =6 B
7 "o some e!tent 1@ <=
"otal 7= 1==
"able .6 Opportunity to share ideas
)igure .D Opportunity to share ideas
Interpretation
"he analysis reveals that 77G of the employees agree that they have an opportunity to share their ideas and B G
of the employees say they do not have any opportunity and remaining <=G of the employees have an
Opportunity to share ideas to some e!tent.
7. 'ow do you rate the infrastructure and equipment providedN
a? E!cellent b? (ery good c? 0ood d? 9oor
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"able.7 Infrastructure and Equipment
)igure .1= Infrastructure and Equipment
Interpretation
"he analysis reveals that <7G of the employees feel good about the infrastructure and equipment
provided in the organiation and BG of the employees feel e!cellent and 6B G of the employees
say very poor infrastructure.
:. #re you encouraged to participate in training to improve your skills and competenciesN
a? Jes b? *o
40
/.*o (ariables $espondents 9ercentage >G?
1 E!cellent 7 1=
6 (ery good = =
7 0ood 1D <7
: 9oor =@ 6B
"otal 7= 1==
"able.: 9articipation in training to improve skills
)igure .11 9articipation in training to improve skills
Interpretation
"he analysis reveals that the 1==G of the employees feel they are encouraged to participate in
training to improve their skills and competencies.
;? Eo you feel that the company provides opportunities for your growth and developmentN
a? Jes b? *o c? "o some e!tent
/.*o (ariables $espondents 9ercentage >G?
1 Jes 11 7B
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/.*o (ariables $espondents 9ercentage >G?
1 Jes 7= 1==
6 *o = =
"otal 7= 1==
6 *o = =
7 "o some e!tent 1D <7
"otal 7= 1==
"able .; Opportunity for growth and development
)igure .16 Opportunity for growth and development
Interpretation
"he analysis reveals that 7B G of the employees feel that company provides an opportunity for
growth and <7 G feel that there is an opportunity to some e!tent for career growth and
development in the organiation.
<. Eid the company policies or procedures make your job more difficultN
a? 5ore often b? /ometimes c? #lways d? *ever
/.*o (ariables $espondents 9ercentage >G?
1 5ore often ; 1B
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6 /ometimes 1< ;7
7 #lways = =
: *ever D 7=
"otal 7= 1==
"able .< Iob difficulty
)igure .17 Iob difficulty
Eata Interpretation
"he analysis reveals that 1B G of the employees feel that company policies and procedures make
their job difficulty and 7= G of the employees say never and ;7 G of the employees feel that
company policies and procedures make their job difficulty sometimes.
B? +hat made you to remain employed with the companyN
a? .hallenging work b? /alary c? ,ess travel d? Employee benefits
/.*o (ariables $espondents 9ercentage >G?
1 .hallenging work 6@ D7
6 /alary = =
7 ,ess travel = =
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: Employee benefits =6 =B
"otal 7= 1==
"able.B Employee retention
)igure no .1: Employee retention
Eata Interpretation
"he above analysis shows that D7G of the employees feel challenging work is the reason to
remain employed in the organiation and B G of the employees feel employee benefits retain
employees in the organiation.
@. 9lease rate the following-
@a? how do you rate the positive work environmentN
a? E!cellent b? 0ood c? fair d? poor
/.*o (ariables $espondents 9ercentage >G?
1 E!cellent =1 7
6 0ood 6B D=
7 )air =6 B
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: 9oor = =
"otal 7= 1==
"able.@ 9ositive work environment
)igure.1; 9ositive work environment
Interpretation
)rom the above data it is interpreted that D=G of the employees rated good about positive work
environment and 7G of the employees say e!cellent and B G of the employees feel fair.
@b?. salary
a? E!cellent b? 0ood c? )air d? 9oor
/.*o (ariables $espondents 9ercentage >G?
1 E!cellent =1 7
6 0ood 67 BB
7 )air = =
: 9oor =< 6=
"otal 7= 1==
"able.D /alary
45
)igure.1< /alary
Interpretation
"he analysis reveals that BB G of the employees are satisfied and feel good about the basic
compensation offered by the organiation and 6= G of the employees feel dissatisfied about their
salary and 7 G of the employees say e!cellent pay pack.
@c?. Employee involvement in the organiationN
a? E!cellent b? 0ood c? )air d? 9oor
/. *o (ariables $espondents 9ercentage >G?
1 E!cellent =6 B
6 0ood 6; @7
7 )air =6 B
: 9oor =1 7
"otal 7= 1==
"able.1= Employee involvement in the organiation
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)igure .1B Employee involvement in the organiation.
Interpretation
"he analysis shows that @7 G of the employees actively take part in activites and BG of the
employees feel e!cellent .
D. Eo you get the recognition that you deserve for your performanceN
a? Jes b? *o
/. *o (ariables $espondents 9ercentage >G?
1 Jes 1: :B
6 *o 1< ;7
"otal 7= 1==
"able.11 9erformance recognition
47
)igure 1@ 9erformance recognition
Interpretation
"he above analysis reveals that :B G of the employees feel that they are being recognied for
their performance and ;7G of the employees do not get recognition for their performance.
1=. +ould you like to plan your further career in this organiationN
a? Jes b? *o
/. *o (ariables $espondents 9ercentage >G?
1 Jes 1< ;7
6 *o 1: :B
"otal 7= 1==
"able .16 .areer growth
48
)igure 1D .areer growth
Interpretation
"he above chart shows that ;7G of the respondents like to plan their career in the e!isting
organiation and :<G of the respondents are not interested to continue their career in the
organiation.
11. Eoes your management come forward to support when you are facing with critical situation
a? /trongly agree b? #gree c? Eisagree d? /trongly disagree
/.*o (ariables $espondents 9ercentage >G?
1 /trongly agree = =
6 #gree 6; @7
7 Eisagree =; 1B
: /trongly disagree = =
"otal 7= 1==
"able.17 5anagement support
49
)igure6= 5anagement support
Interpretation
"his chart shows that @7G of the employees agree that management supports them in critical
situation and 1BG of them disagree.
16. 'ow satisfied are you with the jobN
a? 'ighly satisfied b? 'ighly dissatisfied c? /atisfied d? Eissatisfied
/.*o (ariables $espondents 9ercentage >G?
1 'ighly satisfied =1 7
6 'ighly dissatisfied = =
7 /atisfied 6< @B
7: Eissatisfied =7 1=
"otal 7= 1==
"able .1: Iob satisfaction
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)igure.61 Iob satisfaction
Interpretation
"he analysis reveals that the @BG of the employees are having work satisfaction and 7 G of the
employees are highly satisfied and 1= G of the employees are not satisfied with their job
17. Eo you agree employees are paid worth their contributionN
a? /trongly agree b? #gree c? Eisagree d? /trongly disagree
/.*o (ariables $espondents 9ercentage >G?
1 /trongly agree =1 7
6 #gree 61 B=
7 Eisagree =B 67
: /trongly disagree =1 :
"otal 7= 1==
"able .1; .ontribution based payment
51
)igure.66 .ontribution based payment
Interpretation
"he above chart shows that 7G of the employees strongly agree that they are paid worth for their
contribution and B= G of the employees agree, 67G of the employees disagree and :G of the
employees strongly disagree.
1:. 'ow well do you think the appraisal system worked for youN
a? 0ood b? E!cellent c? /atisfactory d? 9oor
/.*o (ariables $espondents 9ercentage >G?
1 0ood 6= <B
6 E!cellent =1 7
7 /atisfactory =@ 6B
: 9oor =1 7
"otal 7= 1==
"able .1< #ppraisal system
52
)igure 67 #ppraisal system
Interpretation
"he chart shows that <B G of the respondents feel appraisal system worked for them and 7 G of
the employees worked e!cellently for them and 6BG of them satisfied and remaining 7G of
them are not satisfied with appraisal system.
1;. Is training program always linked with your career development Hgrowth.
a? /trongly Eisagree b? Eisagree c? *eutral d? #gree
/.*o (ariables $espondents 9ercentage >G?
1 /trongly Eisagree =1 7
6 Eisagree =6 B
7 *eutral 66 B7
: #gree =; 1B
"otal 7= 1==
"able.1B "raining linked to career development
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)igure .6: "raining linked to career development
Interpretation
"he above analysis shows that 7G of the employees strongly agree that training programmes are
linked with their career and BG of the employees disagree and B7 G of the employees find only
some of the training programmes are related with career growth and 1BG of them agree with it.
1<. Eoes fun at work have any impact on 5otivation levels of employeesN
a? Jes b? *o
/.*o (ariables $espondents 9ercentage >G?
1 Jes 6= <B
6 *o 1= 77
"otal 7= 1==
"able .1@ Impact of fun on motivation
54
)igure6; Impact of fun on motivation
Interpretation
"he above analysis shows that <BG of the respondents accept that fun at work increases
motivation levels and 77G of the respondents do not agree.
1B. 'ow is your relationship between your superiorsN
a? 'ighly Eissatisfied b? Eissatisfied c? /atisfied d? 'ighly /atisfied
/.*o (ariables $espondents 9ercentage >G?
1 'ighly dissatisfied = =
6 Eissatisfied =7 1=
7 /atisfied 6B D=
: 'ighly satisfied = =
"otal 7= 1==
"able 1D $elationship between supervisors
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)igure 6< $elationship between supervisors
Interpretation
"he chart shows that D= G of the respondents are satisfied with the relationship between their
supervisors and 1= G of them are not satisfied.
)indings
5ost of the people have an opportunity to share their ideas
5ajority of the people are satisfied with the infrastructure and equipment provided by the
organiation.
#ll the employees are encouraged to participate in training to improve skills and
competencies but it was found that there is no opportunity to growth based on the
improved skill set.
5ost of the employees find difficult with company policies and procedures, that making
their job difficult.
5ost of the employees do not get recognition for their performance. It was found that
most of the training programmes are not in favour of employee career development.
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Informal interaction with the employees vi the answers to the questionnaire had lots of
deviations.
$egularity and punctuality to the work was given more importance rather than
performance at work and training point.
:BG of the employees are not interested to continue their career in the e!isting
organiation.
/uggestions
0ood infrastructure and congenial atmosphere boost up employee morale with which he
e!hibits a committed and dedicated work.
#wareness has to be created about company policies and procedures which is very vital
for the organiation success and employee satisfaction.
Employees shall be rewarded based upon their performance rather than the punctuality.
"raining programmes shall be in such a way that it supports the employees career
development.
"he gap between formal and informal approach of employees towards the same problem
to be addressed in a more effective efficient mannaer.
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.onclusion
$etention of talented employees is critical to the long%term health and success of any
organiation. It is important for every organiation to implement retention strategies and also
take measures to reduce employee turnover. "he retention strategies followed by the .oca .ola
company are good and all the employees are satisfied and implemented in the organiation and
the retention is high.
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