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1. Introduction
3. Research Methodology
3.1 Primary Data
Bibliography
“Employee Retention” is the buzzword that one could hear in all the companies. Hiring a
talented employee and retaining them is one of the major concerns faced by the
companies. The employees with more experience in an organization are always an asset
to the company, the reason being they are much familiar with the company culture.
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.
Employee retention refers to policies and practices companies use to prevent valuable
employees from leaving their jobs. How to retain valuable employees is one of the
biggest problems that plague companies in the competitive marketplace. Not too long
ago, companies accepted the "revolving door policy" as part of doing business and were
quick to fill a vacant job with another eager candidate. Nowadays, 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.
Employees today are different. They are not the ones who don’t have good opportunities
in hand. As soon as they feel dissatisfied with the current employer or the job, they
switch over to the next job. It is the responsibility of the employer to retain their best
employees. If they don’t, they would be left with no good employees. A good employer
should know how to attract and retain its employees.
The top organizations are on the top because they value their employees and they know
how to keep them glued to the organization. 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.
1.3 What Makes Employee Leave?
Employees do not leave an organization without any significant reason. There are certain
circumstances that lead to their leaving the organization. The most common reasons can
be:
# Job is not what the employee expected to be: Sometimes the job responsibilities don’t
come out to be same as expected by the candidates. Unexpected job responsibilities lead
to job dissatisfaction.
# Job and person mismatch: A candidate may be fit to do a certain type of job which
matches his personality. If he is given a job which mismatches his personality, then he
won’t be able to perform it well and will try to find out reasons to leave the job.
# Lack of appreciation: If the work is not appreciated by the supervisor, the employee
feels de-motivated and loses interest in job.
# Lack of trust and support in coworkers, seniors and management: Trust is the
most important factor that is required for an individual to stay in the job. Non-supportive
coworkers, seniors and management can make office environment unfriendly and
difficult to work in.
# Stress from overworks and work life imbalance: Job stress can lead to work life
imbalance which ultimately many times lead to employee leaving the organization.
Companies have now realized the importance of retaining their quality workforce.
Retaining quality performers contributes to productivity of the organization and increases
morale among employees.
Four basic factors that play an important role in increasing employee retention include
salary and remuneration, providing recognition, benefits and opportunities for individual
growth. But are they really positively contributing to the retention rates of a company?
Basic salary, these days, hardly reduces turnover. Today, employees look beyond the
money factor.
Employee Rewards
6. Gifts at Some Occasions: Giving 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.
Now that so much is being done by organizations to retain its employees, why is retention
so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. It’s
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:
1. 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.
4. 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.
Chapter-3
Research Methodology:
I’ve collected most of the secondary data from various websites relating to the HRM..
The main objective was to obtain basic reasons for retention for the employees in a
particular organization.
3.2 Secondary Data:
This data was collected through the responses, which I got through questionnaire.
The responses were first analyzed thoroughly and I went for the tabulation of all collected
data. After that charts and relevant graph has been drawn to go for the final interpretation.
Chapter-4
Strategic Elements:
The basic practices which should be kept in mind in the employee retention strategies are:
2. Empower the employees: Give the employees the authority to get things done.
3. Make employees realize that they are the most valuable asset of the organization.
9. Create an environment where the employees want to work and have fun.
These practices can be categorized in 3 levels: Low, medium and high level.
<Low> <Medium > <High>
# Providing benefits
* Home insurance plans
* Legal insurance
* Travel insurance
* Disability programs
# Gymnasiums
# Part-time schedules
# Understand employee needs: This can be done through proper management style and
culture
# Listen to the employee and show interest in ideas
* Appreciate new ideas and reward risk-taking
* Show support for individual initiative
* Encourage creativity
# Hire the right people from the beginning: employee retention is not a process that
begins at the end. The process of retention begins right from the start of the recruitment
process.
* The new joinees should fit with the organization’s culture. The personality, leadership
characteristics of the candidate should be in sync with the culture of the hiring
organization.
* Referral bonus should be given to the employees for successful hires. They are the
best source of networking.
Organizations should understand and know the value of its people. Technocrats who
invent new things, managers with very good team control and effective team
management, executives who bring up good production levels, and sales people who
outperform and bring more customers to the business, these employees bring more profit
and success to the company. That is why employers love to retain their key employees.
However, there is a downside of retaining the employees for a long time. The companies
need to pay more benefits, health care etc to the employees. If the employee stays long in
a company, it is quite normal that the management expects more performance and
productivity from them.
4.3 RETENTION MYTHS
The process of retention is not as easy at it seems. There are so many tactics and
strategies used in retention of employees by the organizations. The basic purpose of these
strategies should be to increase employee satisfaction, boost employee morale hence
achieve retention. But some times these strategies are not used properly or even worse,
wrong strategies are used. Because of which these strategies fail to achieve the desired
results. There are many myths related to the employee retention process. These myths
exist because the strategies being used are either wrong or are being used from a long
time.
These myths prevent the employer from successfully implementing the retention
strategies. Let us learn about some of these myths.
1. Employees leave an organization for more pay: Money may be the motivating
factor for some but for many people it is not the most important factor. Money matters
more to the low-income-employees for whom it’s a survival issue. Money can make an
employee stay in an organization but not for long. The factors more important than
money are job satisfaction, job responsibilities, and individual’s skill development. The
employers should understand this and work out some other ways to make employees feel
satisfied. When employees leave, management tries to retain them by offering more
money. But instead they should try to figure out the main reason behind it. Issues that are
mainly the cause of dissatisfaction are organization’s policies and procedures, working
conditions, relationship with the supervisor and salary, etc. For such employees,
achievement, growth, respect, recognition, is the main concern.
2. Incentives can increase productivity: Incentives can surely increase productivity but
not for long term. Cash incentives, volume work targets and speed awards are old
management beliefs. They can generate work speedily and in volumes but can’t boost
employee commitment. Rather speed can hamper the quality of work produced. What
really glues employees to their work and organization is quality work, meaningful
responsibilities, recognition, respect, growth opportunities and friendly supervisors.
3. Employees run away from responsibilities: It is a myth that employees run from
responsibilities. In-fact employees feel more responsible if they are given extra
responsibilities apart from their regular job. Employees look for variety, greater control
on the processes and authority to take decisions in their present job. They want
opportunities to learn and grow. Management can assign extra responsibilities to their
employees and appreciate them on the completion of these tasks. This will induce a sense
of pride in the employee and will improve the relationship between the management and
the employee.
4. Loyalty is a thing of the past: Employees can be loyal but what they need is an
employer for whom they can be loyal. There is no reason for the employee to hop jobs if
he’s satisfied with the employer.
Many organizations are feeling the pinch of low unemployment and high turnover.
Maybe yours is one of them. Keeping good employees is critical to organizational
success. However, many organizations look at this area as a series of tasks to be
performed. This is a process, not a set of tasks…and once that mindset is taken, a
comprehensive, ongoing system can be developed to ensure your retention goals are
realized. Here are four areas to consider when developing your systemic process.
Building Block 4: Learn From the Past with an Eye on the Future
Even with the best work environments, employees do leave for a variety of reasons. Find
out why your voluntary terminations resign by conducting structured exit interviews.
Then, use that data to make positive changes in your workplace. If recurring themes come
up, verify them with existing employees. Ask employees to form teams to develop
recommendations to improve those areas. As for involuntary terminations….study them
carefully. Are there trends? Do certain supervisors have a higher than normal percentage
of involuntary terminations? What are the reasons? How can these be avoided in the
future? By implementing principles of the Four Building Blocks, you can build a strong
process for holding on to your employees. This, of course, is by no means exhaustive…
but it's a heckuva good start!
4.5 Managing Employee Retention:
* Attraction and recruitment strategies enable selection of the ‘right’ candidate for each
role/organization
* New employees’ initial experiences of the organization are positive
* Appropriate development opportunities are available to employees, and that they are
kept aware of their likely career path with the organization
* The organization’s reward strategy reflects the employee drivers
* The leaving process is managed effectively
Most of us would agree that today’s environment is considerably more complex than that
which existed in 1980s and 1990s. Consequently, organizations have been introducing
change to cope with the challenges of the environment and competition. This, in turn, led
to change in job demands and employee skills. Thus, human skills and talents are in great
demand than that of other resources. Organizations started offering attractive pay
packages in order to lure the employees with scarce skills. This, in turn led to increase in
external mobility. Therefore, organizations started adapting strategies to retain employees
with scarce skills and talents. Retention management, thus, acquired significance.
Why Retention?
# Existing employees has already completed the adjustment stage and is in contributing
and performance stage
# Existing employees is familiar with the company and community environment and
climate
# There won’t be further cost of recruitment, relocation and training, in case of existing
employees.
4.7 MANAGER’S ROLE IN RETENTION
When asked about why employees leave, low salary comes out to be a common excuse.
However, research has shown that people join companies, but leave because of what their
managers’ do or don’t do. It is seen that managers who respect and value employees’
competency, pay attention to their aspirations, assure challenging work, value the quality
of work life and provided chances for learning have loyal and engaged employees.
Therefore, managers and team leaders play an active and vital role in employee retention.
Managers and team leaders can reduce the attrition levels considerably by creating a
motivating team culture and improving the relationships with team members. This can be
done in a following way:
* Standing up for the Team: Team leaders are closest to their team members. While
they need to ensure smooth functioning of their teams by implementing management
decisions, they also need to educate their managers about the realities on the ground.
When agents see the team leader standing up for them, they will have one more reason to
stay in the team.
* Focus on future career: Employees are always concerned about their future career. A
manager should focus on showing employees his career ladder. If an employee sees that
his current job offers a path towards their future career aspirations, then they are likely to
stay longer in the company. Therefore, managers should play the role of career
counselors as well.
4.8 EMPLOYEE RETENTION IN NEW MILLENNIEUM:
Today's labor force is different. Supervisors must take responsibility for their own
employee retention. If they don't, they could be left without enough good employees. A
wise employer will learn how to attract and keep good employees, because in the long
run, this workforce will make or break a company's reputation. What's Different?
Employee retention involves being sensitive to people's needs and demonstrating the
various strategies in the five families detailed in Roger Herman's classic book on
employee retention, Keeping Good People.
1. Environment
2. Relationship
3. Support
4. Growth
5. Compensation
Employee retention takes effort, energy, and resources...and the results are worth it.
Compensation:
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. While setting up the packages, the following components should
be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation package. It
is also the most common factor of comparison among employees. It includes
* Basic wage
* Dearness allowance
Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.
Long-term incentives: Long term incentives include stock options or stock grants. These
incentives help retain employees in the organization's startup stage.
After retirement: It includes payments that an Employee gets after he retires like EPF
(Employee Provident Fund) etc.
Growth and development are the integral part of every individual’s career. If an employee
can not foresee his path of career development in his current organization, there are
chances that he’ll leave the organization as soon as he gets an opportunity.
The important factors in employee growth that an employee looks for himself are:
Work profile: The work profile on which the employee is working should be in sync
with his capabilities. The profile should not be too low or too high.
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,
they’ll leave the organization for better jobs. Organization should not limit the resources
on which organization’s success depends. These trainings can be given to improve many
skills like:
* Communications skills
* Technical skills
Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant touch with
the employees.
Support:
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one of them is
a success. Management should try to focus on its employees and support them not only in
their difficult times at work but also through the times of personal crisis. Management
can support employees by providing them recognition and appreciation.
Employers can also provide valuable feedback to employees and make them feel valued
to the organization.
The feedback from supervisor helps the employee to feel more responsible, confident and
empowered. Top management can also support its employees in their personal crisis by
providing personal loans during emergencies, childcare services, employee assistance
programs, counseling services, et al.
Employers can also support their employees by creating an environment of trust and
inculcating the organizational values into employees. Thus employers can support their
employees in a number of ways as follows:
# By providing feedback
# By counseling them
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
employee’s interest and he becomes de-motivated. It leads to less satisfaction and
eventually attrition.
A supportive work culture helps grow employee professionally and boosts employee
satisfaction. To enhance good professional relationships at work, the management should
keep the following points in mind.
Respect for the individual: 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. 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 he’ll feel useless and will be dissatisfied.
Employees should know what the organization expects from them and what their
expectation from the organization is. Deliver what is promised.
Promote an employee based culture: The employee should know that the organization
is there to support him at the time of need. Show them that the organization cares and
he’ll show the same for the organization. An employee based culture may include
decision making authority, availability of resources, open door policy, 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.
Environment:
• Culture
• Values
• Company reputation
• Quality of people in the organization
• Employee development and career growth
• Risk taking
• Leading technologies
• Trust
• Flexible hours
• Telecommuting
• Dependent care
• Alternate work schedules
• Vacations
• Wellness
Lack or absence of such environment pushes employees to look for new opportunities.
The environment should be such that the employee feels connected to the organization in
every respect.
Chapter-5
In today’s competitive hiring market, employee retention has become an important issue
for all employers. As a small business owner, you are aware that it’s harder than ever to
find and keep good people. You also understand that your ability to retain quality
workers can make or break your business.
Fortunately, there are many ways to keep your prized employees happily on board. Here
are some tips to help improve employee relations and ensure that your company keeps the
best of the best:
1. Compensate fairly. Money isn’t the only reason people stay, but it does play a
significant role in job satisfaction. You must offer your employees a competitive salary
and honor their service and tenure with raises, bonuses, and other monetary rewards.
Fair pay shows that you respect them. In addition, offer a good benefits package, which
can induce employees to stay committed to your business.
2. Be open to their ideas. In a high-performance workplace, some of the best ideas come
from the employees themselves. Make sure to keep the lines of communication open.
Good leaders listen to their employees and treat them as valuable team members.
3. Treat people as equals. If you really want employees to feel a sense of loyalty and
commitment, treat them as partners, not hired hands. Give your employees a sense of
ownership, and keep them engaged.
6. Make time. Make an effort to spend one-on-one time with individual employees. Take
them to lunch. Show each person that you’re personally committed to keeping and
growing his or her talent by inquiring what other positions the employee might be
interested in as their career develops.
7. Be flexible. It’s important to help each employee achieve a balance between their work
life and personal life. Allow them to attend their children’s activities or tend to sick
relatives when necessary.
8. Encourage creativity. Employees need to enjoy the work they do, and you need to
provide a creative and challenging work environment, or all the other great things the
company does won’t matter. If you micromanage and stifle creativity, don’t expect to
keep good people.
9. Keep them healthy and happy. Encourage good health and wellness of body, mind,
and spirit. You can be creative. Bring in a yoga instructor for morning meditation, or give
gift certificates for massages. Allow for restful breaks. Learn about your employee’s
outside interests. Feed their minds with books, magazine subscriptions, and concert or
theater tickets.
10.Lead with the heart. Win your employees over. Excellence is impossible without
their affection and respect. Whether it’s through sharing a compelling vision with them,
paying attention to work/life balance, or simply providing a positive, uplifting work
environment, if you want to keep great employees, find some way to tap into their hearts.
The positive word-of-mouth about your company’s culture will go a long way in both
retaining good workers and attracting new ones.
Chapter-6
The best way to improve employee retention is to understand what employees want and
need from the workplace and provide it. Companies must meet employee demands within
limits, of course. Management can not just dish out indiscriminate amounts of money to
employees or give them a four day work week in many cases. Yet surprisingly, many
employee retention practices do not have to cost a cent.
Studies show that many employees leave for reasons that have nothing to do with money
or benefits, but rather with issues such as feeling unappreciated or feeling they have a
very limited chance for advancement. Other complaints include not enough honest
feedback, the actual job does not match with what they were told in initial interviews,
and/or there is a lack of challenge/learning/training. Employers can resolve these sorts of
issues in cash-free ways to help increase their employee retention rates.
Promoting from within whenever possible often means greater employee retention.
Moreover, many employees are better motivated to succeed in the firm if they feel they
have a possibility of being promoted. Professional development of workers can easily be
worked into managers' review processes. Professional development works best as an
employee retention practice when the employee is involved in planning his or her growth
plan.
The best employee retention practice of all may be to take the time to hire the right
person for the job in the first place. But when employees do resign, conducting exit
interviews can help in future employee retention. Employers find out useful information
during exit interviews, allowing them to make changes that may retain other employees
thinking of leaving for similar reasons.
Of course, some employees do leave simply because of low pay and/or a lack of benefits.
However, companies can be competitive in these areas and still stay within budget
constraints. Allow employees to choose between the benefits the company is considering.
Staying competitive in wages is an excellent employee retention practice as it helps one
get and keep the top employees in their fields. These employees are likely to stay if they
would get less money in similar firms of the same size.
Employee engagement illustrates the commitment and energy that employees bring to
work and is a key indicator of their involvement and dedication to the organization.
Employees who are engaged are more productive, content and more likely to be loyal to
an organization. When organizations put sound HR practices in place, they are more
likely to discover that employees feel satisfied, safe and will work to their full
potential...and that means they are more likely to stay put.
It's one of the largest costs in all different types of organizations, yet it's also one of the
most unknown costs. It's employee turnover.
Companies routinely record and report costs such as wages and benefits, Workman's
Compensation Insurance, utilities, materials, and space, yet most companies have no and
report the cost of employee turnover. It can be much higher than you think.
Several well-regarded studies have recently estimated the cost of losing an employee:
• SHRM, the Society for Human Resource Management, estimated that it costs
$3,500.00 to replace one $8.00 per hour employee when all costs -- recruiting,
interviewing, hiring, training, reduced productivity, et cetera, were considered.
SHRM's estimate was the lowest of 17 nationally respected companies who
calculate this cost!
• Other sources provide these estimates: It costs you 30-50% of the annual salary of
entry-level employees, 150% of middle level employees, and up to 400% for
specialized, high level employees!
• Do a quick calculation: Think of a job in your organization where there has been
some turnover, perhaps supervisors. Estimate their annual average pay and the
number of supervisors you lose annually. For example, if their average annual pay
is $40,000, multiply this by .125% (or 125% of their annual pay, a reasonable cost
estimate for supervisors). This means it costs $50,000 to replace just one
supervisor. If this company loses ten supervisors a year, then 10 times $50,000
equals $500,000 in replacement costs for just supervisors. This is the bottom line
cost. The top line cost? If the company's profit margin is 10%, then it costs
$5,000,000 in revenues to replace these ten supervisors.
This averages out to ten people per month. Let's be extra conservative and shave SHRM's
estimate (see above) down to $3,000.00 to replace each employee.
This amounts to $30,000 per month, or $1,000.00 in employee turnover costs every day
of the month! Annually, this totals $360,000.00.
Actual turnover costs are usually much higher than we think they are -- until we estimate
them.
You may be thinking, "Some employee turnover is unavoidable, even desirable." You're
right. Some turnover is necessary, to replace marginal or poor employees with more
productive ones and to bring in people with new ideas and expertise. However, high
turnover costs are both avoidable and unnecessary.
This is where companies need to focus their efforts. The goal is to retain valued
performers while replacing poor ones.
Most companies group both types of performers together when looking at turnover. By
doing so, they're missing the cost and significance of replacing the good performers.
There are a variety of reasons this is not seen as a problem, all of which cost companies
in expertise and dollars. How many of these occur in your organization?
1. No process is in place to tabulate costs. One survey found that only 44% of its
respondents had a process in place to estimate turnover costs; 43% of companies relied
on intuition, and 13% had no process at all. (1)
2. Costs are not reported to top management. It's a business axiom that one of the best
ways to get top management's attention is to show them what something costs. However,
most top management never gets to see turnover cost estimates because most companies
don't measure them -- or if they do, they don't report them to top management.
3. It's an inescapable cost of doing business. Except, it's not! While some turnover is
unavoidable and desirable, most turnover, especially among your better and top
performers, is largely avoidable. Thinking that turnover is just a normal cost of doing
business is the same quality of thinking which says that accidents are just an inescapable
part of being in the construction business.
4. It's an HR problem. While HR needs to be a key partner in reducing turnover cost,
this is a strategic issue requiring top management's attention and actions, in addition to
HR's efforts, to resolve it.
5. Costs are underestimated, and so they register less concern. If costs are
underestimated because the organization doesn't agree on or know what to measure, the
statistics generated either register less concern than they should, or are disputed and held
in disregard.
• Exit costs
• Recruiting
• Interviewing
• Hiring
• Orientation
• Training
• Compensation & benefits while training
• Lost productivity
• Customer dissatisfaction
• Reduced or lost business
• Administrative costs
• Lost expertise
• Temporary workers
There needs to be advance agreement among Human Resources, Finance, and Operations
as to which cost measures will be considered valid. Then, it has to be measured and
reported.
6. Waiting until there's a crisis. I was amazed when the executive director of one
organization told me she knew that one of her capable managers was unhappy, but
decided it wasn't necessary to take action because she hadn't received a letter of
resignation yet.
Prevention is what works best. Begin to measure your turnover costs and, very
importantly, look at who is leaving so you'll know if you're retaining your best people.
The time to do this is now. Waiting until there's a crisis to take action limits your options
and success rate. It also often triggers the common response of offering more money to
get someone to stay, instead of fixing the original problem.
These are among the most common reasons company retention efforts fail, even when
they're implemented by capable people.
Diagnosing the reasons behind turnover always pays for itself. Don't start without an
assessment.
2. Implementing too many solutions instead of the most effective solutions. Managers
often brainstorm a number of plausible solutions, then implement many of them
--especially those favored by top management. However, what is most needed is to select
and implement a limited number of solutions which will be most effective at solving the
problem. Implementing too many solutions, even good ones, will diffuse your resources
and weaken your efforts and success.
3. No way of measuring success to know what works. How do you know which retention
solutions you've implemented are working effectively and which aren't, where you need
to make refinements, and what strategies you need to drop if you don't have a way of
measuring your results?
First, rank your employees in three categories: best performers, middle performers, and
lowest performers. Your objective is to retain your top performers; develop and retain
your middle performers, turning them into near-top or top performers if possible; and
potentially replace your lowest performers.
Second, agree internally on the measures you'll use to calculate turnover costs. Be certain
you're taking all costs into consideration. Most organizations greatly underestimate them.
Third, report turnover costs to top management on a monthly, quarterly, and annual basis.
When turnover costs are unacceptably high, or higher than your industry's average, do an
assessment. Find out who is leaving and why they're leaving. Exit interviews can help
you find out why.
You need to know if it is your top, middle, or lowest performers who are leaving so you
can gauge the expertise level leaving your organization. You're obviously going to
employ (and pay for) different strategies if your top performers are voluntarily leaving,
compared to middle or lowest level performers.
Develop solutions capable of solving the problems you uncover, and only implement a
limited number of them. Measure the success of your retention efforts, and refine them.
Two Very Key Strategies to Save a Large Amount of Time and Money:
Very key strategy # 1: Don't wait until turnover costs become unacceptably high before
you implement an ongoing retention program. Put a retention program in place before
you have crisis situation. You not only must find out why employees leave your
organization, you must also find out why others stay.
Very key strategy # 2: Survey your top performers now in order to find out what keeps
them there, why they might leave, what type of competitive offers they may find
attractive, and what they need to be happier and more productive in their jobs. You'll do a
better job of keeping them (along with their expertise and value). You'll also find out
highly beneficial information about improvements your organization needs.
This means driving improvements in your organization by what your best people tell you,
instead of focusing on taking care of the ever-present complainers in every organization.
Just How Valuable are Retention Efforts? One source estimated that a 10% reduction in
employee turnover was worth more money than a 10% increase in productivity, or a 10%
increase in sales!
Chapter-7
DATA ANALYSIS AND INTERPRETATION:
No. of employees
Challenging job assingments
Salary
Flexibility
Friends
No time to look for new job
Location is convenient No. of employees
Relationships
Feel appreciated
Makes me feel good
Career opportunities
0 2 4 6 8 10 12 14 16
From the above graph it is clear that most of the employees are interested at their
present job due to challenging job assingments. Other then this location and working
hours are also the reasons to stay at their present job.
Ques. 2: How would you rate the supervisors you work for now?
Most of the employees consider their employee good or very good in every aspect of
work.
Ques. 3: How important is company loyalty to you?
Most of the employees consider company loyalty as highly important and also no
employee consider company loyalty as not important to them.
Ques. 4: What would be the things your company could do to improve retention?
Most of the employees believe that one thing their company could do to improve
retention is to listen to their employees more, some also think that company should
train their managers better to improve retention.
Ques. 5: How important is feeling appreciated for your work by your coworkers and
supervisors?
Appreciation is highly important for employees for their good work by their seniors or
coworkers.
Ques. 6: On a scale of 1 to 10, how would you rate the efforts of your company to
retain good people?
Many employees think that their company’s efforts to retain good employees are either
average or good.
Ques. 7: How confident are you that you can find a better job somewhere else?
Most of the employees are confident enough that they will get a better job somewhere
else.
Ques. 9: Does your supervisor, or someone at work, seem to care about you as a
person?
The feeling of belongingness is very important for any employee to stay at the present
job. Here most of the employees think that only sometimes their seniors care about
them as persons and not as resources.
Ques. 10: To improve your workplace environment, what would you like to see your
executives do?
Recognition for work is important that’s why most of the employees believe that to
improve workplace environment, they need better recognition for their work by their
seniors and coworkers.
Ques. 11: In the last 1 year, have you had the opportunities at work to learn and
grow?
In the above graph it is clear that many employees think that in the last 1 year most of
the time they had opportunities to learn and grow while many think sometimes they
had opportunities to learn and grow.
Chapter-8
PRIME FINDINGS:
1. There is no definition of satisfaction of the employees but it is a process, which is
carried out by the mutual understanding of the employees and the employer for
the betterment of both of them.
2. Retention should not be always considered to be a strategy but it should be
bitterly considered to be a continuous process that has to e carried out a grass root
level by the company.
3. There can be numerous reasons for the employee to be retained in particular
organization.
4. Employee retention does not mean to invest huge amount in the welfare of the
concerned employees.
5. Where as employee retention consist of keeping a track of the employees and also
to take care of the various factors that are responsible for keeping the employee
loyal to the organization.
6. The company should not be always target oriented, they should set the target
according to real ground situation. The employees should not be given non-
achievable targets because non-achievable may bring depression in to them, and it
can be the hurdle in process of retention.
7. It is necessary for the organization to provide regular incentives, bonus to all
performing employee, it can be helpful for building loyalty in the employees and
also to create an attitude for the achievement of goal of the organization.
8. Money is important but it is not the only reason people stay with an organization.
9. Treat your employees like you treat your most valuable clients.
10. Retention is much more effective when you put the person into the right job!
Know the person and their motivation.
Chapter-9
CONCLUSION:
1. It is cheaper to keep your good employees than it is to hire and train new
ones. So company should always try to retain their good and productive
employees rather than depending and continuing to hire new employees
2. Strong retention strategies become strong recruiting advantages.
3. Retention is much more effective when you put the right person into the
right job. Know the job! Know the employee and their motivation. So it is
necessary for the company to always find the best match for their
respective vacancy or position at initial stages of the recruitment only,
otherwise it can be a major problem of employees.
4. Money is important but it is not the only reason people stay with an
organization. So this should be the crust of the story that only money
cannot keep the employee to stay in the organization, but it is the kind of
relationships and satisfaction that keep the employees to stay for longer
time in the organization.
5. Recognition, in various forms, is a powerful retention strategy. This means
that company tries to include the employees in the various decisions that
the company takes and should also try to make them a indispensable part
of the management and a whole organization. So that they should always
feel appreciated.
6. Company should always keep a watch on the structure of wages and salary
on the overall industry basis so that they can redefine and restructure their
policy regarding this. From time in order to provide most competitive
wages and salaries to their employees.
Chapter-10
Appendix (Sample Questionnaire):
2. How would you rate the supervisors / managers you work for now?
i. Poor
ii. Average
iii. Good
iv. Very good
v. Exceptional
i. Not important
ii. Important
iii. Very important
iv. Highly important
5. How important is feeling appreciated for your work by your coworkers and
supervisors?
i. Not important
ii. Important
iii. Very important
iv. Highly important
6. On a scale of 1 to 10, how would you rate the effort of your company to retain
good people?
i. 1 to 3
ii. 3 to 6
iii. 6 to 8
iv. 8 to 10
7. How confident are you that you can find a better job somewhere else?
i. Not confident
ii. Confident
iii. Very confident
iv. Highly confident
i. Pay scale
ii. Long working hours
iii. Lack of recognition for your work
iv. Attitude of coworkers and supervisors
v. Lack of recreational activities
9. Does your supervisors, or someone at work. Seem to care about you as a person?
i. Never
ii. Sometimes
iii. Most of the time
iv. All the time
10. To improve your workplace environment, what would you like to see your
supervisors do?
i. More money
ii. Better recognition
iii. More time off
iv. More staff
v. Better promotion
11. In the last 1 year, have you had the opportunities at work to learn and grow?
i. Never
ii. Sometimes
iii. Most of time
iv. All the time
i. Never
ii. Sometimes
iii. Most of the time
iv. All the time
Bibliography:
Websites:
www.google.com
www.retention.naukrihub.com
www.humanresources.com
Books: