Documente Academic
Documente Profesional
Documente Cultură
(2011-13)
SubmittedBy:
SubmittedTo:
YogitaSainiMr.RajatMendiratta
M.B.A.PartIV
This is to certify that the project report titled Employee Retention in Private
Sector with special reference to Infosys Ltd.
has been carried out by Ms. Yogita Saini towards the partial fulfillment of the
MBA Degree of Rajasthan Technical University, Kota.
She has worked under my guidance. To the best of my knowledge and belief, this
is an original work and being submitted to the University for the first time.
PREFACE
This project is pertaining to EMPLOYEE RETENTION in the Infosys Ltd., a
leading IT company in Information Technology. I learned and gained the
methods, procedures as well as regulation which make employee retention, a
successful one.
It was a great opportunity for me to understand the significance of corporation
atmosphere and how employees coordinated with the policies and procedures
being issued by their seniors and superiors.
The power sector of company has been expanding concurrently to support the
growth rate surging Indian economy. The demand for man power is growing
exponentially and the scope of growth of this sector is immense.
ACKNOWLEDGEMENT
Yogita Saini
TABLE CONTENT
S.NO
CONTENTS
P.NO.
1.
Certificate
2.
Preface
3.
Acknowledgement
4.
Abstract
5.
Introduction to Industry
6.
Introduction to Organization
30
7.
35
8.
Research Methodology
79
9.
84
10.
103
11.
SWOT Analysis
104
12.
106
13.
Conclusion
107
14.
Recommendations
108
15.
Bibliography
110
16.
Annexure
111
ABSTRACT
In Employee retention 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 both organization as well as the employee.
Employees are different today. They are not the ones who dont 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 dont, they would be left with no good
employees. A good employer should know how to attract and retain its
employees.
Most employees feel that they are worth more than they are actually paid. There
is a natural disparity between what people think they should be paid and what
organizations spend in compensation. When the difference becomes too great
and another opportunity occurs, turnover can result. Pay is defined as the wages,
salary, or compensation given to an employee in exchange for services the
employee performs for the organization. Pay is more than "dollars and cents;" it
also acknowledges the worth and value of the human contribution. What people
are paid has been shown to have a clear, reliable impact on turnover in
numerous studies.
Today, more and more corporate leaders are turning to volunteer employee
programs as a key strategy to help realize their business goals while positively
engaging their employees in helping to meet the needs of the local community.
Promoting Employee Retention is thus part of the ongoing evolution taking place
in the private sector to move beyond a sole focus on the bottom line to becoming
socially responsible corporate citizens. With more than 90 percent of Fortune 500
companies currently supporting some form of employee volunteer program,
standards for such activities are now being developed to help track their impact
on the community and improve employee volunteer program practices.
6
The growing interest in these activities has triggered some important questions.
Why is volunteering in the community important in the first place? What are some
of the challenges facing companies as they get more involved in employee
volunteer efforts? What are some of the benefits and added value for local
NGOs? Given the time pressures at the workplace, what are the most effective
and efficient ways to mobilize volunteers? What have we learned over the past
few years that can help both companies and local NGOs work together
successfully to promote such efforts? To address some of these questions, we
have chosen to highlight examples of how the staff of one company - Lucent
Technologies has supported the work of the International Youth Foundation
(IYF) and its partner organizations in the field.
In this instance, Lucent staffs are contributing their time and talents to youth
programs managed by the global Fund for Youth Development (GFYD), an
initiative of IYF and the Lucent Foundation (now called Alcatel - Lucent
Foundation).
They would employ nearly 2.3 million people and provide indirect and induced
employment for another approx. 6.5. Million workers Indias off shoring industries
could well become one of the worlds great export industries at par with Frances
luxury goods industry.
International Data Corporation (CDC) forecast that BPO services sales from
India will grow from USD 709 million in 2003 to about USD 2572 million in 2006
at a CAGR of 52 percent. T he marketing BPO services are expected to grow
from a US D609 million business in 2003 to USD 2188 million in 2006 at CAGR
of 62 percent. According to NASSCOM keeping in line with the performance of
the software sector , IT enabled services also witnessed explosive growth in the
last two years and ITES exports are likely to touch USD 21-24 billion by 2011.
The leading publicly-listed players have reported a top line year-to-year
growth of nearly 34 percent, over the first half of the current fiscal. MNCowned captives units have been scaling up their operations steadily
steadily with the headcount forecast to grow by at least 30 percent of
tithes year. IT-ITES activity in the domestic market is also witnessed
steady growth with the services segments coming into its own reflecting
sound optimism for the year end results.
Indias software and services sector grew by a healthy 31.4% to USD
29.6 billion during 2995-06. Exports capitulated by 33% to USD 23.6
billion. Growth in the sector to continue in 2006-07.It expects revenue to
grow by 27-30% to USD 36-38 billion.
India, presently accounts for about 0.6% of the global IT hardware
production of USD 1200 billion. The domestic market is estimated at 44
billion US while exports amount to 425 billion. The investments in
hardware manufacturing, however, stand at a mere Rs. 1300 crones.
Indias hardware requirements in 2010 are estimated at 78 USD of which
54 can be sourced from the domestic market. Hardware continues to
account for a major share of the domestic IT-ITES spend- 53 percent of
the total in FY 2004-05. In spite of continued pricing pressure in key
10
as telecom, banking
& financial
services,
manufacturing, retail and BPO/IT enabled services as well as major eGovernance initiatives of the Central and State Governments. On the other hand,
the drop in prices, especially at the entry level: has contributed to a strong
household market.
The southward trend in pricing continued during the year due to technological
reasons and other initiatives of the industry, including the sub- Rs. 10,000 PC.
The year 2005-06 also witnessed aggressive market campaigns with celebrity
endorsement for IT products. Significant consumption in the small and medium
enterprise added to the industry numbers. Further, the trend of increased PC
purchase in smaller towns and cities as witnessed in the previous years,
continued undiminished.
The proportion of the assembled PCs the smaller lesser known regional brands
and unbranded systems, reduced from 41 % of the total PC sales in 2004-05 to
37% in 2005-06, however, in absolute terms they registered a growth of 14%.
11
Aggressive pricing from the branded players cannibalized the market for the
assembled PCs.
A proportion of the Indian grew from 24% in 2004-05 to 28%, registering a growth
of 48%. The market share of the MNC remained constant at 35%, however, they
registered an annual growth of 27%.
Household, with sales growth of 33% accounted for 12 % of the market. Within
businesses, sales to the larger businesses (over 50 employees) grew by 38%; to
the medium business segments (between 10 to 50 employees) by 17% and that
to small enterprise by 45%.
In terms of processor configuration, PC sales in 2005-06 were dominated by P4,
which accounted for 80% of the market share, while alternative processor like
AMD, Via Cyrix etc. accounted for another 17%.Consumption of PCs with
alternative processor grew by 139 % in absolute terms. In households,
alternative processor accounted for 26 % of the market, a reflection of the higher
price sensitivity in the home market.
Overall printer sales grew by 28% over that in FY 2004-05.The sales Is of laser
printers recorded a consumption of 0.32 million (3.2 lakh) units, growing 128%
over the last year. The resurgence in the market for dot-matrix printers as
witnessed two years ago , continues undiminished in 2005-06. Sales of the dotmatrix printer grew 18% over 2004-05.
Sales of inkjet printers grew by 13%v led by consumption in households and
smaller cities. The growth projection for FY2006-07 for overall printer sales is 23;
sales are expected to cross 1.8 million (18 lakh) units. The figures are a result of
an extensive study conducted by MAIT & IMRB.
India has maintained its global competitiveness offering the best combination of
cost quality- scalability vis--vis competing offshore destinations such as the
Philippines and China. The Indian productivity- quality- cost model has emerged
as an optimal value proposition for the software and service industry.
12
Like the service sector, Indian ITES-BPO companies are adopting global quality
standards like six sigma, COPC, ISO 9001 etc. while MNCs dominates the ITESBPO space, a increasing number of Indian companies are making a foray into
this sector.
Presently the ITES-BPO industry in India is segmented along the following lines:
Specialized, vertical-specific IT enabled services include:
Medical transcription
Online education
Remote maintenance
Contract centers
Telemarketing/pre-sales
Consumer care
Technical support
Data processing
The BPO industry has extended its lines of service to value-added areas like
packaged software implementation, system integration, (R&D), engineering,
engineering design, biotech research, research outsourcing, customer analytics,
market research, and equity research.
13
The BPO market can be broadly broken down into three areas of functional
operations:
1. Business administration (falling under G&A expense costs)
2. Supply chain management(COGS) , and
3. Sales, marketing and customer care(selling and marketing costs)
The Indian BPO business is entering a new phase with several Indian
companies acquiring small to medium size businesses in the US and Indian
companies spreading wings globally.
This new trend marks a milestone in the development of the Indian BPO sector,
which is now growing faster than software services.
Essar, Datamatics, Godrej and Internet, jointly owned by TCS and HDFC, form a
growing a list of Indian companies that have in the last few months acquired BPO
businesses overseas in the footsteps of HCL, which pioneers the process by
buying a BPO company in northern Ireland two years ago.
Indian ITES-BPO service providers realizing the huge business potential are
expanding their presence in the ITES-BPO market. The addressable global
market for offshore IT is around US$ 150-180 billion. Going forward, the
more traditional IT outsourcing service lines such as hardware and software
maintenance, network administration and help desk services will account for
45 percent of the total addressable market for off shoring and are likely to
drive the next wave of growth.
Service lines that have driven recent growth i.e. application development and
maintenances (AMD) and R $ services are already 30-35 percent penetrated and
are not as likely to grow dramatically.
The addressable market for the global BPO industry is equally sizeable and
could expand by more than 10 times from its current size of approx USD 11.5
billion at least USD 120-125 billion.
14
BPO growth will be driven largely by traditional industries ( e.g. retail and
banking) and cross industry function such as human resource and finance and
accounting. While the addressable market for the global offshore IT and BPO
industries is quite large industry evolution will largely be shaped by the interplay
of three major forces:
1. Supply( the capacity and quality of offshore locations)
2. Demand ramp up (realistic off shoring by companies) and
3. Industry conduct ( the actions taken by industry players)
Approximately 35-40 percent of the total addressable market will be
captured in the next five years. For example, while around USD 300 billion
can ultimately be relocated from sources countries to low-cost offshore
locations, industries estimates indicating that approx USD110 billion will
actually be off shored by 2011. The global offshore IT and BPO industry
are subjected to different constraints that will impact their ability to address
the full market opportunity. The offshore industry is more likely to be
demand- constrained
potential to develop and manufacture IT hardware for the global market and gain
higher global share. The hardware industry is estimated to reach USD 69 billion
by 2011.
India needs to deliver on both basic as well as business infrastructure. Thus the
India IT and BPO industry need at least five new gurgaon-plus and seven new
pune-plus integrated townships. The resulting burden on urban infrastructure is
16
likely
to
be
substantial.
These
urban
infrastructure
demands
require
17
Business Process Outsourcing (BPO) is the delegation of one or more ITintensive business processes to an external provider that in turn owns,
administers and manages the selected process based on defined and
measurable performance criteria. Business Process Outsourcing (BPO) is one of
the fastest growing segments of the Information Technology Enabled
Services(ITES) industry.
Few of the motivation factors as to why BPO is gaining ground are:
18
19
Insurance Processing
Our insurance processing service provide specialized solutions to the insurance
sector and support critical business processes applicable to the industry right
from new business acquisition to policy maintenance to claims processes
New Business/Promotion:
Inbound/outbound sales, initial setup, Case management, Underwriting, Risk
assessment, Policy issuance etc.
Surrender
Audits
Accounts
Receivable,
Accounting,
Claim
Service Example:
Data entry from Paper/Books with highest accuracy and fast turn around
time(TAT)
20
Data Entry from hardcopy/ Printed Material into text or required format
Copy, Paste, Editing, Sorting, Indexing Data into required format etc.
Service Example:
Service Example:
Service Example:
General Ledger
Financial Statements
Bank Reconciliation
Service Example:
Payroll Processing
Service Example:
22
Standard pre-job training: Again, due to the wide variety of the jobs, lack of
general clarity on skill sets, etc., there is no standard curriculum, which could be
designed and followed.
Benchmarks: There are hardly any Benchmarks for compensation and benefits,
performance or HR policies. Everyone is charting their own course.
Customer-companies tend to demand better results from outsourcing partners
than what they could actually expect from their own departments. When the job
is being done 10,000 miles away, demands on parameters such as quality, turn
around timeliness,
Information security, business continuity and disaster recovery, etc, are far higher
than at how. So, how to be more efficient tan the original?
Lack of focused training and certifications
Given this background, the recruiting and compensation challenges of HR
departments are only understandable.
Key to success
The key to success in ramping up talent in a BPO environment is a rapid training
module. The training component has to be seen as an important sub-process,
requiring constant re-engineering.
Business Process Outsourcing: The Top Rankers
WNS has emerged as the top BPO in India, pushing Wipro Spectramind to the
second position, according to a survey done by NASSCOM. The basis of ranking
is the revenues generated by the BPO companies in 2003-04, as per US GAAP.
A list of top fifteen BPO companies in India is given below:
23
1. WNS Group
2. Wipro Spectramind
3. Daksh e-Services
4. Convergys
5. HCL Technologies
6. Zenta
7. ICICI Onesource
8. MphasiS
9. EXL
10. Tracmail
The parameters for th survey was: Employee Size (operation level executives,).
Percentage of last salary hike, cost to company, overall satisfaction score,
composite satisfaction, company culture, job content/ growth, training salary and
compensation, appraisal system, people preferred company ( percentage of
respondents of a company who named their own company as the preferred one,)
dream company; (percentage of respondents in the total sample who preferred a
particular company)
Employee benefits provided by majority of the BPO companies
Provident Fund: As per the statutory guidelines, the employee is required
to contribute a percentage of his basic salary and DA to a common fund.
The employer for this fund contributes as well. The employee can use the
deposited in this fund for various personal purposal purposes such as
purchases a new house, marriage, etc.
Gratuity: Gratuity is one of the retrial benefits given to the employee in
which the employer every year contributes a particular amount. The fund
24
Subsidized
Food
and
Transporation:
The
organizations
provide
25
Cellular phone/ laptops: cellular phone and laptops are provided to the
employee on the basis of business need. The employee is responsible for
the maintaince and safeguarding of the asset. Personal health care. Some
of the BPOs provided the facility for extensive health check up can be
done once a year.
Loans: many companies provides loan facility on three different occasions.
Employee is provided with financial assistance in cases of a medical
emergence. Employees are also provided with financial assistqance at the
time of their wedding. And, the new recruits are provided with interest free
loans their initial settlement at the work location.
Education Benefits: many BPO companies have the policy to develop the
personality and knowledge level of their employees and hence reimburses
the expenses incurred towards tution fees, examination fees, for the
higher studies.
Performance Based Incentives: In many BPO companies they have plans
for performance based incentives scheme. The parmeters for calculation
are process performance i.e. speed accuracy and productivity of each
process.
Flexi Time:
opportunity to work with flexible work schedules and set out conditions for
availing this provision. This facility is initated by employees and approved
by management to meet business commitments while supporting
employee personal life needs. Child care. Parent care, health situation,
maternity, formal education program..
26
No personal life
Physical strains
Uneasy relationship with peers or managers
What they have to say?
With so much of uncertainty in the market people are trying their best to stop or
at least have a control on the attrition rate in this industry.
Career growth in the industry is robust and there is a long term opportunity. The
great growth momentum that the industry is witnessing is creating both vertical
and lateral; career opportunities in the middle management and supervisory level
within the industry- Aadesh Goyal, Executive Vice President and GM , Hughes
BPO services.
28
INTRODUCTION TO INFOSYS
Vision
"We will be a globally respected corporation."
Mission
"We aim to achieve our objectives in an environment of fairness, honesty,
courtesy towards our clients, employees, vendors and society at large."
Values
We believe that the softest pillow is a clear conscience. The values that drive us
underscore our commitment to:
Client Value: To surpass client expectations consistently
Leadership by Example: To set standards in our business and transactions
and be an exemplar for the industry and ourselves
Integrity and Transparency: To be ethical, sincere and open in all our
transactions
Fairness: To be objective and transaction-oriented, and thereby earn trust
and respect
29
MAKE Winner and one of only two Indian companies amongst global leaders to
have won the award in 2008.
HISTORY
Established in 1981, Infosys is a NASDAQ listed global consulting and IT
services company with more than 130,000 employees. From a capital of US$
250, we have grown to become a US$ 6.04 billion (LTM March-11 revenues)
company with a market capitalization of approximately US$ 41 billion.
In our journey of over 29 years, we have catalyzed some of the major changes
that have led to India's emergence as the global destination for software services
talent. We pioneered the Global Delivery Model and became the first IT company
from India to be listed on NASDAQ. Our employee stock options program
created some of India's first salaried millionaires
MILESTONE
2009
Infosys selected as a member of The Global Dow
Employee strength grows to over 100,000
2008
Infosys crosses revenues of US$ $ 4.18 billion
Annual net profits cross US$ 1 billion
2007
Infosys crosses revenues of US$ 3 billion. Employees grow to over 70,000+
31
2006
2005
Records the largest international equity offering of US$ 1 billion from India
Selected to the Global MAKE Hall of Fame
2004
2003
2002
2001
Touch revenues of US$ 400 million. Opens offices in UAE and Argentina,
and a development center in Japan
N. R. Narayana Murthy is rated among Time Magazine/CNN's 25 most
influential businessmen in the world
Infosys is rated as the Best Employer by Business World/Hewitt
2000
Infosys becomes the 21st company in the world to achieve a CMM Level 5
certification
Opens offices in Germany, Sweden, Belgium, Australia, and two development
centers in the US
Infosys Business Consulting Services is launched
1998
1997
1996
The Infosys Foundation is established
1995
33
1994
1993
1987
1983
1981
Our business solutions and leadership are recognized by several global forums.
We have earned Level 5, the highest rating for the e-Sourcing Capability Model
(eSCMSP: v2.0) by Carnegie Mellon University's IT Services Qualification
Center (ITSqc). We are the second company in India and third globally to receive
the certification.
AWARDS
Infosys blends the science of software with the art of consulting: HBR
35
Dr. Manmohan Singh, Prime Minister of India, presented the Infosys Prize
2010 for outstanding scientific research that advances Indias economic
and social development.
On the cusp of the 30th anniversary, Infosys was voted the 'Most Admired
Indian Company' in The Wall Street Journal Asia 200 online poll. The
company has achieved this distinction for nine years in a row.
Award for 'Best Virtualization Strategy' and Platinum Award for 'Best Green
Strategy for a Data Center'. Infosys was also listed in the Most Admired
Knowledge Enterprises (MAKE) 2008 study and Forbes' Asian Fabulous 50 for
the fourth consecutive year. We were ranked among the 'Best Companies for
Leaders' in a survey by Bloomberg BusinessWeek and Hay Group in 2009,
'India's Best Companies to Work For - 2009' in a survey by the Great Place to
Work Institute and conferred with the NASSCOM gender inclusivity award.
Asset magazine acclaimed our Corporate Governance, acknowledging our
corporate policies and practices as among the best in the industry.
INTRODUCTION
Employee Retention involves taking measures to encourage employees to
remain in the organization for the maximum period of time. Corporate is facing a
lot of problems in employee retention these days. Hiring knowledgeable people
for the job is essential for an employer. But retention is even more important than
hiring. There is no dearth of opportunities for a talented person. There are many
organizations which are looking for such employees. If a person is not satisfied
by the job hes doing, he may switch over to some other more suitable job. In
todays environment it becomes very important for organizations to retain their
employees.
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 organization for some reasons. The reasons may be personal and
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 retention. In this section we are going to study
about various topics related to employee retention, why it is needed, basic
practices, myths, etc. in detail.
37
Thus, Employee turnover is one of the largest though widely unknown costs an
Organization faces. While companies routinely keep track of various costs such
as supplies and payroll, few take into consideration how much employee turnover
will cost them: Ernst & Young estimates it costs approximately $120,000 to
replace 10 professionals. According to research done by Sibson & Company, to
recoup the cost of losing just one employee a fast food restaurant must sell 7,613
combo meals at $2.50 each. Employee turnover costs companies 30 to 50% of
the annual salary of entry-level employees, 150% of middle-level employees, and
up to 400% for upper level, specialized employees. Now that so much is being
done by organizations to retain its employees.
Why is retention so important? Is it just to reduce the turn over costs?
Well, the answer is a definite no. Its not only the cost incurred by a company that
emphasizes the need of retaining employees but also the need to retain talented
employees from getting poached
39
Compensation
Environment
Growth
Relationship
Support
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.
40
Salary and wages represent the level of skill and experience an individual has.
Time to time increase in the salaries and wages of employees should be done.
And this increase should be based on the employees performance and his
contribution to the organization. Bonus: Bonuses are usually given to the
employees at the end of the year or on a festival. Economic benefits: It includes
paid holidays, leave travel concession, etc. Long-term incentives: Long term
incentives include stock options or stock grants. These incentives help retain
employees in the organization's start up stage.
Health insurance: Health insurance is a great benefit to the employees. It saves
employees money as well as gives them a peace of mind that they have
somebody to take care of them in bad times. It also shows the employee that the
organization cares about the employee and its family.
41
experiences
Performance Recognition
NTPC
Learning and growth opportunities
Competitive rewards
Opportunity to grow, learn and implement
Strong social security and employee welfare performance- oriented
culture.
Tata Steel
42
Wipro
Companys brand as an employer
Early opportunities for growth
High degree of autonomy
Value compatibility
Innovative people program
TCS
The group brand equity
Strong corporate governance and citizenship
Commitment to learning and development
Best in people practices
Challenging assignments
Opportunity to work with fortune 500 clients
Organization Environment
It is not about managing retention. It is about managing people. If an
organization manages people well, employee retention will take care of
itself. Organizations should focus on managing the work environment to
make better use of the available human assets. People want to work for
an organization which provides
Culture
Values
Company reputation
Quality of people in the organization
Employee development and career growth
Risk taking
Leading technologies
Trust
should be in sync with his capabilities. The profile should not be too low or too
high.
should
help
him
achieve
his personal
goals also.
Organizations can not keep aside the individual goals of employees and
foster organizations goals. Employees priority is to work for themselves
and later on comes the organization. If hes not satisfied with his growth,
like:
1. Communications skills
2. Technical skills
3. In-house processes and procedures improvement related skills or
customer satisfaction related skills
4. Special project related skills
Need for trainings are recognized from individual performance reviews, individual
meetings, employee satisfaction surveys and by being in constant touch with the
employees.
Importance of Relationship in Employee Retention Program
Sometimes the relationship with the management and the peers becomes the
reason for an employee to leave the organization. The management is
sometimes not able to provide an employee a supportive work culture and
environment in terms of personal or professional relationships. There are times
when an employee starts feeling bitterness towards the management or peers.
This bitterness could be due to many reasons. This decreases employees
interest and he becomes demotivated. 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.
45
Respect for the individual: Respect for the individual is the must in the
organization.
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 hell show the same for the organization. An employee based culture may
include decision making authority, availability of resources, open door policy, etc.
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
46
By providing feedback
By giving recognition and rewards
By counselling them
By providing emotional support
informed on key issues. Most importantly, they need to know that their
opinions matter and that management is 100% interested in their input.
2. Employee Reward Program: A positive recognition for work boosts the
motivational levels of employees. Recognition can be made explicit by
providing awards like best employee of the month or punctuality award.
3. Career Development Program: Every individual is worried about his/her
career. He is always keen to know his career path in the company.
Organization can offer various technical certification courses which will
help employee in enhancing his knowledge.
4. Performance Based Bonus: A 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. This bonus should strictly
productivity based.
5. Recreation facilities: Recreational facilities help in keeping employees
away from stress factors. Various recreational programs should be
arranged. They may include taking employees to trips annually or biannually, celebrating anniversaries, sports activities, etc.
This is the only way to identify their specific concerns. When leaders listen,
employees respond by becoming more engaged. This results in increased
productivity and employee retention. Engaged employees are much more likely
to be satisfied in their positions, remain with the company, be promoted, and
strive for higher levels of performance.
Step 2. Measure current level of Employee Retention
Employee Retention needs to be measured at regular intervals in order to track
its contribution to the success of the organization. But measuring the
engagement (feedback through surveys) without planning how to handle the
result can lead employees to disengage
It is important that Employee Retention is not viewed as a one time action.
Employee Retention should be a continuous process of measuring, analyzing,
defining and implementing.
The employee survey is a diagnostic tool of choice in the battle for the heart of
employees. Studies of Gallup, Mercer, Hewitt and Watson Wyatt asked workers
numbers of questions relating to their job satisfaction. Gallup being one of the
oldest the consulting organization creates a feedback system for employers that
would identify and measure elements of worker engagement most tide to the
bottom line. Things such as sales, growth, productivity and customer loyalty are
all accessed
Step 3: Identify the problem areas
Identify the problem areas to see which the exact areas are.
Step 4. Taking action to improve Employee Retention by acting upon the problem
areas
Nothing is more discouraging to employees than to be asked for their feedback
and see no movement toward resolution of their issues.
actions taken to address concerns will let the staff know how their input is valued.
Feeling valued will boost morale, motivate and encourage future inputs. Taking
49
action starts with listening to employee feedback and a definitive action plan will
need to be put in place finally.
50
EMPLOYEES
SATISFACTION
REGARDING
MONETARY
work hard with retention management. The research is based on the leaders in
the Finnish case company Tradeka. Following key questions are intended to be
answered: What are the consequences between leaders actions and employees
retention? Which is the leaders role when it comes to retaining employees?
Purpose statement: The purpose of the thesis is to investigate and analyze how
company leaders today can retain their key employees. How can the provision of
key human resources develop a long-term relationship that makes top
employees stay in the company? The study aims to establish the procedure
leaders apply to retain employees. The purpose is to compare the qualitative
study, made at the case company, with findings from the thesis theoretical
framework.
Research method: The study is a qualitative, as well as a theoretical study
where empirical findings and theories has been compared. The intention of
investigating and using the Finnish company Tradeka Limited as a case
company, is to make the information from the theories more valid, and also the
interest in how retention management works in practice. Eleven qualitative
interviews were conducted at Tradeka?
Financial department, both with supervisors and employees to get a broader view
at the phenomenon retention management. Result: Leaders and their skill in
creating a culture of retention, has becoming a key in why people stay and what
usually drives them away from a company. The leader has become the main
factor in what motivates peoples decision to stay or leave. For organizations to
keep its key employees their number one priority should be to look at their
management,
because
people
leave
managers
and
not
companies.
Characteristics in a leader that are of importance, as the leader plays a key role
in retention management is: trust builder, esteem builder, communicator, talent
developer and coach, and talent finder. The leaders relation to the employees
plays a central role in retaining employees.
53
Low,
medium and
high level.
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 organizations 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. Proper training should be given to the managers
on interview and management techniques. An internship program can be
followed to recruit the fresh graduates.
Retention Success Mantra
prefer to stay with the same company and use their time and experience for
personal growth and development, they leave mainly because of work related
stress and dissatisfactions .More and more companies have now realized the
importance of a healthy work culture and have a gamut of people management
good practices for employees to have that ideal fresh work-life. Closed doors
work culture can serve as a deterrent to communication and trust within
employees which are potential causes for work- Related apathy and frenzy.
A 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 exchange 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.
Quality Of Work
The success of any organization depends on how it attracts, recruits, motivates,
and retains its workforce. Organizations need to be more flexible so that they
develop their talented workforce and gain their commitment. Thus, organizations
are required to retain employees by addressing their work life issues. The
elements that are relevant to an individuals quality of work life include the task,
the physical work environment, social environment within the organization,
administrative system and relationship between life on and off the job. The basic
objectives of a QWL program are improved working conditions for the Employee
and increase organizational effectiveness.
Providing quality work life involves taking care of the following aspects:
58
Occupational health care: The safe work environment provides the basis for the
person to enjoy working. The work should not pose a health hazard for the
person. The employer and employee, aware of their risks and rights, could
achieve a lot in their mutually beneficial dialogue.
Suitable working time: Organizations are offering flexible work options to their
employees wherein employees enjoy flexi-timings for dedicating their efforts at
work.
Appropriate salary: The appropriate as well as attractive salary has always
been an important factor in retaining employees. Providing employees salary at
par with the other counterparts of above that what competitors are paying
motivates them to stick with the company for long. QWL 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.
People also conceive of QWL 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 organization
and an environment in which this commitment can flourish. Providing quality at
work not only reduces attrition but also helps in reduced absenteeism and
improved job satisfaction. Not only does QWL contribute to a company's ability to
recruit quality people, but also it enhances a company's competitiveness.
Common beliefs support the contention that QWL will positively nurture a more
flexible, loyal, and motivated workforce, which are essential in determining the
company's competitiveness. Supporting Employees Organizations these days
want to protect their biggest and most valuable asset and they want to do this in
a way that best suits their organizational culture. Retaining employees is a
difficult task. Providing support to the employees acts as a mantra for retraining
59
satisfaction
also
comes
with
high
engagement
levels.
So,
61
Feedback
Feedback acts as a channel of communication between the employee and his
manager. The amount of information employees receive about how well or how
poorly they have performed is what we call feedback. It is a dialog between a
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. Managers can provide either positive
feedback or negative feedback to employees. This feedback helps the employee
assess his performance and identify the improvement areas. Positive feedback
communicates
managerial
satisfaction.
Positive
recognition
for
good
employee.
It gives managers and employees a way to identify and discuss skills and
strengths.
Positive feedback leads to employee retention and Retention.
63
Category C: These are the employees who have proper, well structured
communication with their employers. Communication is also the way to win the
employees trust in the organization. Employees trust the employers who are
friendly and open to them. This trust leads to employee loyalty and finally
retention.
Employers also feel that the immediate supervisors are the most authenticated
and trusted source of information for them. So the organizations should hire
managers who are active communicators.
Communication Mediums
Open door policy: Organizations should support open door policies so that the
employees feel comfortable and are able to express their doubts and feeling to
their employers. So there should be effective communication across the
organization and this communication should be two-way. Communication alone
can lead to unimaginable heights of employee retention.
64
65
66
67
Why employees leave often puzzles top management. Exit interviews are an
ideal way of recording and analyzing the factors that have led employees to
leave the organization. They allow an organization to understand the reasons for
leaving and underlying issues. However employees never provide appropriate
response to the asked questions. So an impartial person should be appointed
with whom the employees feel comfortable in expressing their opinions.
68
Higher attrition rates within a particular industry have forced companies to use
some innovative strategies to retain employees. Retention Bonus is one of the
important tools that are being used to retain employees. Retention bonus is an
incentive paid to an employee to retain them through a critical business cycle.
Retention bonuses are becoming more common in the corporate world because
companies are going through more transitions like mergers and acquisitions.
They need to give key people an attractive incentive to stay on through these
transitions to ensure productivity. Retention bonuses have proven to be a useful
tool in persuading employees to stay. A retention bonus plan is not a panacea.
According to a survey, non management employees generally receive about 10
percent of their annual salaries in bonuses, while management and top-level
supervisors earn an additional 50 percent of their annual salaries. While bonuses
based on salary percentages are the generally used, some companies choose to
pay a flat figure. Employees are chosen for retention bonuses based on their
contributions to management and the generation of revenue. Retention bonuses
are generally vary from position to position and are paid in one lump sum at the
time of termination. However, some companies pay in installments as on when
the business cycle completes. A retention period can run somewhere between six
months to three years. It can also run for a particular project. A project
has its own life span. As long as the project gets completed, the employees who
have worked hard on it are entitled to receive the retention bonus. For example,
the implementation of a system may take 18 months, so a retention bonus will be
offered after 20 months. Although retention bonuses are becoming more
common everywhere, some industries are more likely than others to offer them.
Retail/wholesale companies are the most appropriate to implement stay-pay
bonuses, followed by financial service providers and manufacturing firms.
69
Employee retention starts with recruitment. Early departures arise from the wrong
recruitment process. Here are a few ways to ensure how to hire the right talent
for a particular job. Hire appropriate candidates. Hire candidates who are
actually suitable for the job. For this the employer should understand the job
requirements clearly. Dont hire under qualified or clearly overqualified
candidates.
Provide realistic job preview at the time of hiring: Mostly employees leave an
organization because they are given the real picture of their job responsibilities at
the time of joining. Attrition rate can be reduced if a right person is hired for a
right job. Realistic preview of the job responsibilities can be given to the
employment seekers by various methods like discussions, trial periods,
internships etc.
Clearly discuss what is expected from the employee: Before joining the
Organization, tell the candidate what is expected from him. Setting wrong
expectations or hiding expectations will result in early leaving of employees.
Discuss what the expectations of the employees are: Ask employees what
they expect from the organization. Be realistic. If their requirements can be
fulfilled only then promise them. Or tell them beforehand that their requirements
cannot be fulfilled.
Dont show them an unrealistic picture Culture fit: Try to judge individuals
capability to adapt to the organizations culture. A drastic change in the culture
may give a culture shock to the candidate.
Referrals: According to the research, referred candidates stay longer with the
organization. There is a fear of hampering the image and reputation of the
person who referred the candidate.
70
71
Providing coaching
Everyone wants to be successful in his or her current job. However, not everyone
knows how. Therefore, one of the key responsibilities will be providing coaching
that is intended to improve the performance of employees. Managers often tend
to escape this role by just coaching their employees. However, coaching is
followed by monitoring performance and providing feedback on the same.
Delegation: Many team leaders and managers feel that they are the only people
who can do a particular task or job. Therefore, they do not delegate their jobs as
much as they should. Delegation is a great way to develop competencies.
Extra Responsibility: Giving extra responsibility to employees is another way to
get them engaged with the company. However, just giving the extra responsibility
does not help. The manager must spend good time teaching the employees of
how to manage responsibilities given to them so that they dont feel over
burdened.
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 counsellors as well.
Understand that employees need to balance life and work so offer flexible
starting times and core hours. Provide 360 feedback surveys and other
questionnaires to foster open communication. Consider allowing anonymous
surveys occasionally so employees will be more honest and candid with their
opinions. Provide opportunities within the company for career progression and
cross-training. Offer attractive, competitive benefits .
Organizations should target job applications for employees who have
characteristics that fit well with the organizational culture. Upon conducting an
interview, seek out traits, such as loyalty. Also, ask the potential employee what
motivates them on the job. Having more information about the potential
employees expectations can help retain them, should they get hired into the
company.
Rewards and Recognition
Employees want to be recognized for a job well done. Rewards and recognition
respond to this need by validating performance and motivating employees toward
continuous improvement. Rewarding and recognizing people for performance not
only affect the person being recognized, but others in the organization as well.
Through a rewards program, the entire organization can experience the
commitment to excellence. When the reward system is credible, rewards are
meaningful; however, if the reward system is broken, the opposite effect will
occur. Employees may feel that their performance is unrecognized and not
valued, or that others in the organization are rewarded for the wrong behaviours.
Unrecognized and no valued performance can contribute to turnover.
Recognition for a job well done fills the employees' need to receive positive,
honest feedback for their efforts.
Need for Rewards and Recognition
73
spa membership. The nonmonetary rewards are best received when they
are thoughtfully prepared and of highest quality. Professionalism in
presenting the reward is also interpreted as worthwhile recognition.
Rewards should be appropriate to the level of accomplishment received. A cash
award of $50 would be inappropriate for someone who just recommended a
process that saved the organization a million dollars. Determining the amount of
money given is a delicate matter of organizational debate in which organizational
history, financial parameters, and desired results are all factors. Recognition for a
job well done can be just as valued and appreciated as monetary awards. Formal
recognition program can be used with success. First Data Resources, a data
processing services company that employees more than 6,000 individuals in
Omaha, Nebraska, uses a formal recognition program (Adams, Mahaffey, and
Rick,2002). Rewards are given on a monthly, quarterly, and yearly basis, and
range from Nebraska football tickets, gift certificates, pens, plaques, mugs, and
other items.
One of the most popular awards at First Data is called the "Fat Cat Award" that
consists of: $500 gift check Professional portrait of the employee
75
What gives meaning to rewards and recognition? What makes them effective?
First, rewards and recognition should be based on a clear set of standards, with
performance verifiable or observable. The standards for the reward should also
be achievable. If the reward is based on an unachievable result, such as a
production goal that is beyond employees' power, then those employees will not
be motivated. Meaningful rewards and recognition that are achievable have the
greatest impact.
RESEARCH METHODOLOGY
Research:
Research is a systematic method of finding solutions to problems. It is essentially
an investigation, a recording and an analysis of evidence for the purpose of
gaining knowledge. According to Clifford woody, research comprises of defining
and redefining problem, formulating hypothesis or suggested solutions,
collecting, organizing and evaluating data, reaching conclusions, testing
conclusions to determine whether they fit the formulated hypothesis
76
Research Hypothesis
A hypothesis is a preliminary or tentative explanation or postulate by the
researcher of what the researcher considers the outcome of an investigation will
be. It is an informed/educated guess. It indicates the expectations of the
researcher regarding certain variables. It is the most specific way in which an
answer to a problem can be stated.
Research hypotheses are the specific testable predictions made about the
independent and dependent variables in the study. Hypotheses are couched in
terms of the particular independent and dependent variables that are going to be
used in the study. The research hypothesis of this study is as follows.
Ho: There is no significant relationship between incentives and employees
performance.
Ho: There
is no
significant
relationship
between
career development
77
Sampling Design
A sample design is a finite plan for obtaining a sample from a given population.
Simple random sampling is used for this study.
Sampling Procedure
The procedure adopted in the present study is probability sampling, which is
also known as chance sampling. Under this sampling design, every item of the
frame has an equal chance of inclusion in the sample
.
Nature of Research
78
Questionnaire Design:
The questionnaire framed for the research study is a structured questionnaire in
which all the questions are predetermined before conducting the survey. The
form of question is of both closed and open type.
The questionnaire for the research was framed in a clear manner such that it
Enables the respondents to understand and answer the question easily. The
Questionnaire was designed in such a way that the questions are short and
simple and is arranged in a logical manner.
Area of study
79
80
Primary data:
Primary data is the new or fresh data collected from the respondents through
structured scheduled questionnaire.
Secondary data:
The secondary data are collected through the structured questionnaire, literature
review and also from the past records maintained by the company.
NUMBER OF
PARTICULAR
1
2
3
4
Highly satisfied
Satisfied
Neutral
Dissatisfied
RESPONDENTS
18
29
3
0
PERCENTAGE
36
58
6
0
81
Highly satisfied
Total
0
50
0
100
(Chart 4.1)
INTERPRETATION
The table shows that 58% of the respondents are satisfied with the working hours of the
organization. And 36% of the respondents are highly satisfied with the working hours of
the organization.
SL NO
NUMBER OF
PARTICULAR
1
2
3
4
5
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
RESPONDENTS
PERCENTAGE
27
20
3
0
0
50
54
40
6
0
0
100
82
INTERPRETATION
The table shows that 54% of the respondents are highly satisfied that the
management is interested in motivating the employees. And 40% of the
respondent are agreeing that the management is interested in motivating the
employees.
Q.3. Which type of incentives motivates you are getting more?
SL NO
NUMBER OF
PARTICULAR
1
2
3
Financial Incentives
Non financial Incentives
Both
Total
RESPONDENTS
15
9
26
50
PERCENTAGE
30
18
52
100
83
INTERPRETATION
The table shows that 52% of the respondents are expressing that both financial
and non financial incentives will equally motivate them.
Q.4. Are you Satisfy with the present incentives scheme?
SL NO
NUMBER OF
PARTICULAR
1
2
3
4
5
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly satisfied
Total
RESPONDENTS
PERCENTAGE
18
29
3
0
0
50
36
58
6
0
0
100
84
INTERPRETATION
The table shows that 58% of the respondents are satisfied with the present
incentive scheme of the organization.
85
NUMBER OF
PARTICULAR
1
2
3
4
5
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
RESPONDENTS
PERCENTAGE
18
29
3
0
0
50
54
58
6
0
0
100
INTERPRETATION
From the study, 58% of employees agreed that the company is eager in
recognizing and acknowledging their work, 36% strongly agreed and only 6%
showed neutral response.
86
Particular
No. of respondent
Percentage
Yes
30
60
Somehow
20
40
No
Total
50
100
INTERPRETATION
From the study it is clear that 60% of the employees states that their associates
committed to doing quality work. And 40% employees states that their fellow
employees somehow committed to doing quality work.
87
Q.7. In the last year, have you had opportunities to learn and grow?
Particular
Yes always
Somehow
Finds difficult
Total
No. of respondent
25
Percentage
50
15
10
50
30
20
100
INTERPRETATION
From the study it is clear that 50% employees have always had opportunities at
work to learn and grow. And 30% employees have had somehow opportunities at
work to learn and grow.
88
Particulars
Higher efficiency
Target achievement
Professional skill
Communication skill
Total
No. of respondent
25
10
7
8
50
percentage
50
20
14
16
100
INTERPRETATION
From the study it is clear that 50% employees know that they expected of higher
efficiency and 20% employees know that they are expected of target
achievement and 14% employees expected of professional skill at work.
Q.9. Is Job Security existing in the company?
SL NO
NUMBER OF
PARTICULAR
RESPONDENTS
PERCENTAGE
89
1
2
3
4
5
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
15
18
11
3
3
50
30
36
22
6
6
100
INTERPRETATION
The table shows 35% of employees agree with good job security exist in the
company.
NUMBER OF
PARTICULAR
Strongly Agree
RESPONDENTS
PERCENTAGE
15
30
90
2
3
4
5
Agree
Neutral
Disagree
Strongly Disagree
Total
27
8
0
0
50
54
16
0
0
100
INTERPRETATION
The table shows 54% of the respondents agree that they have good relations
with co-worker.
NUMBER OF
PARTICULAR
1
2
3
4
Strongly Agree
Agree
Neutral
Disagree
RESPONDENTS
PERCENTAGE
12
23
3
9
24
46
6
18
91
Strongly Disagree
Total
3
50
6
100
INTERPRETATION
The table shows 46% of employees agree that there is a periodical increase in
the salary.
NUMBER OF
PARTICULAR
1
2
3
4
5
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
RESPONDENTS
10
23
8
6
3
50
PERCENTAGE
20
46
16
12
6
100
92
INTERPRETATION
The table shows 46% of the respondents agree to effective performance
appraisal system existing in the company.
Q.13. Are there enough Effective promotional opportunities in present job?
SL NO
NUMBER OF
PARTICULAR
1
2
3
4
5
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
RESPONDENTS
PERCENTAGE
9
26
9
3
3
50
18
52
18
6
6
100
93
INTERPRETATION
The table shows 52% of the respondents agree with effective promotional
opportunities in their present job.
Q.14. Do you feel that your superiors commitment towards job is good?
SL NO
NUMBER OF
PARTICULAR
1
2
3
Yes
No
Occasionally
Total
RESPONDENTS
PERCENTAGE
47
0
3
50
94
0
6
100
94
INTERPRETATION
The table shows 94% of the respondents agree that their superiors commitment
towards job and quality work is good.
INFERENTIAL STATISTICS
Incentives
Employee
performance
Mean
1.72
Std.
Deviation
.573
N
50
1.50
.707
50
95
Correlations
Incentive Employee
s
performance
Incentives
Pearson
1
Correlation
Sig. (2-tailed)
.
Sum of Squares
and
Cross- 16.080
products
Covariance
.328
N
50
Employee
Pearson
.655(**)
performance
Correlation
Sig. (2-tailed)
.000
Sum of Squares
and
Cross- 13.000
products
Covariance
.265
N
50
** Correlation is significant at the 0.01 level (2-tailed).
.655(**)
.000
13.000
.265
50
1
.
24.500
.500
50
Inference:
Since the Correlation is significant at the 0.01 level (2-tailed) the null hypothesis
that is There is no significant relationship between incentives and
employees performance is rejected and an alternative hypothesis is framed.
H1: There is significant relationship between incentives and employees
performance.
Ho: There
is no
significant
relationship
between
career development
career
development
opportunities
extent of
retention
Mean
Std.
Deviation
3.70
1.035
50
3.36
1.317
45
96
Correlations
Career
development
opportunities
Career
extent of
development retention
opportunities
1
.909(**)
Pearson
Correlation
Sig. (2-tailed)
.
Sum of Squares 52.500
and
Crossproducts
Covariance
1.071
N
50
extent of retention Pearson
.909(**)
Correlation
Sig. (2-tailed)
.000
Sum of Squares 52.111
and
Crossproducts
Covariance
1.184
N
45
** Correlation is significant at the 0.01 level (2-tailed).
.000
52.111
1.184
45
1
.
76.311
1.734
45
Inference:
Since the Correlation is significant at the 0.01 level (2-tailed) the null hypothesis
that is There is no significant relationship between career development
opportunities and the extent of employee retention is rejected and an
alternative hypothesis is framed.
H1: There is significant relationship between career development opportunities
and the extent of employee motivation
Ho: There is no significant relationship between performance appraisal system
and the extent of retention.
Mean
Performance
2.40
appraisal system
Extent
of
2.60
Retention
Std.
Deviation
1.143
50
1.355
50
Correlations
97
performance
appraisal
Extent
system
Retention
Performance
appraisal system
Pearson
1
Correlation
Sig. (2-tailed)
.
Sum of Squares
and
Cross- 64.000
products
Covariance
1.306
N
50
Extent
of Pearson
.962(**)
Retention
Correlation
Sig. (2-tailed)
.000
Sum of Squares
and
Cross- 73.000
products
Covariance
1.490
N
50
** Correlation is significant at the 0.01 level (2-tailed).
of
.962(**)
.000
73.000
1.490
50
1
.
90.000
1.837
50
Inference:
Since the Correlation is significant at the 0.01 level (2-tailed) the null hypothesis
that is There is no significant relationship between performance appraisal
system and the extent of retention is rejected and an alternative hypothesis is
framed.
H1: There is significant relationship between performance appraisal system and
the extent of retention.
Ho: There is no significant relationship between interpersonal relationship in the
organization and extent of motivation.
Employee
relations
Extent
motivation
of
Mean
Std.
Deviation
1.86
.670
50
2.18
1.119
50
98
Correlations
Employee
relations
Employee
relations
Pearson
1
Correlation
Sig. (2-tailed)
.
Sum of Squares
and
Cross- 22.020
products
Covariance
.449
N
50
Extent
of Pearson
.877(**)
motivation
Correlation
Sig. (2-tailed)
.000
Sum of Squares
and
Cross- 32.260
products
Covariance
.658
N
50
** Correlation is significant at the 0.01 level (2-tailed).
Extent
of
Motivation
.877(**)
.000
32.260
.658
50
1
.
61.380
1.253
50
Inference:
Since the Correlation is significant at the 0.01 level (2-tailed) the null hypothesis
that is There is no significant relationship between interpersonal relationship in
the organization and extent of motivation. is rejected and an alternative
hypothesis is framed.
H1: There is significant relationship between interpersonal relationship in the
organization and extent of motivation.
The employees are satisfied with the present incentive plan of the
company.
99
Most of the workers agreed that the company is eager in recognizing and
acknowledging their work.
Majority of the employees agreed that there job security to their present
job.
From the study it is clear that most of employees agrees to the fact that
performance appraisal activities and support from the coworkers in helpful
to get motivated.
The study reveals that increase in the salary will motivates the employees
more.
The incentives and other benefits will influence the performance of the
employees.
SWOT ANALYSIS
STRENGHS
1. Leading BPO organization INFOSYS is having a strong reputation base.
2. There are a great number of employees working in such concern and
growing since in the event of recession.
100
3. Most of the time employees are satisfied since the organization often bring
many welfare activities and programmes as well as incentives measures
just for the purposed of increasing the morale of the employees to perform
better.
4. Greater turnover in India as well as abroad.
WEAKNESSES
1. Executives and employees are made to work in right shifts at frequent
intervals since to meet the international requirements.
2. Sometimes female candidates failed to come or agree for night shifts
leading to either loss of valuable manpower and a loss of organization as
a whole.
3. Executives are employed at frequent intervals making a sense of job
insecurity for existing potential candidates.
4. There is a possibility of physical as well as mental harassment by seniors
as well as assisting colleagues.
5. Significance of grievance handling cell or department is very low.
6. Adequate arbitrary authorities are not enough to manage and handle the
grievance as found most of the times.
OPPORTUNITIES
1. There is a great potential in such sector as there is no prescribed or
professional qualification to get into the industry: just required is the basic
qualification, good knowledge of computer basics with Internet as well as
fluency in English.
101
2. BPO Organization like Infosys and Genpact have initialized their efforts to
start thinking the welfare of their employees in more constructive methods.
3. There is more secure systems of work performance have been
implemented especially in night shifts where female are highly risky to
their work.
THREATS
1. There is a risk and a great threat to females who are working in night
shifts.
2. There is high risk of insecurity of job or being terminated any time due to
inefficient performance.
6. Executive and Employees were not ready for their free and unbiased views for
questions which were asked during project.
7. Also, the management was least interested due to busy schedule and
pressures of recessionary factors.
8. Since project was made to handle with the human resource so therefore
interest factor was also a major limitation.
4. The accuracy of findings is limited by the accuracy of statistical tools used for
analysis.
5. Findings of the research may change due to area, demography, age condition
of economy etc.
SUGGESTIONS
proper
Training should be given.
CONCLUSION
Retention is an important concept that has been receiving considerable attention
from academicians, researchers and practicing HR managers. In its essence,
Retention comprises important elements such as the need or content, search
and choice of strategies, goal-directed behaviour, social comparison of rewards
reinforcement, and performance-satisfaction. The increasing attention paid
towards Retention is justified because of several reasons. Motivated employees
come out with new ways of doing jobs. They are quality oriented. They are more
productive.
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RECOMMENDATIONS
1. It is recommended that there should be a proper grievance system
which leads to the provision of selling various human resource
problems and their disputes amicably.
2. Further it is advisable that executives and employees are made to
know in advance the schedule of working so that they make up
their mind for it.
104
105
10.
Be flexible in terms of work-life balance. Workers more and
more
value a balance between work and life. They want more flexible ways
to engage with their employer. To attract and retain workers with
different work and career expectations, organizations have to be more
flexible in structuring work and its expectations.
11. Create a culture of engagement. Employees have become more
connected with others in the organization (and the broader
supply-and-customer chain) through project-based team work
and process management activities. Employees are shifting
their loyalty to people, teams and projects and away from
company loyalty.
12. Train managers to be effective. Exit interviews consistently
show that poor and bad management practices greatly
contribute to an employees decision to leave a company. It is
imperative to provide supervisors and managers with adequate
tools to become effective managers since we cannot assume that
these competencies are innate.
BIBLIOGRAPHY
BOOKS
Robbins.
Stephen
p,
Decenzo
David
A.
Human
Resource
WEBSITES
o www.idesacellular.com
o www.covergance.in
o www.trai.gov.in
ANNEXURE
QUESTIONNARE
Name:
Age:
Designation:
107
Job assignment..
Q.1. Are you satisfied with the working hours of the organization?
a. Highly Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Highly Dissatisfied
Q.2. Is the management interested in motivating the employees?
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
Q.3. Which type of incentives motivate you are getting more?
a. Financial incentives
b. Non-financial incentives
c. Both
108
Professional Skills
d. Communication Skills
Q.9. Is job security existing in the company?
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
109
110
Q.14. Do you feel that your superiors commitment towards job is good?
a. Yes
b. No
c. Occasionally
Q.1. Are you satisfied with the working hours of the organization?
a. Highly Satisfied
18
b. Satisfied
29
c. Neutral
d. Dissatisfied
e. Highly Dissatisfied
111
27
b. Agree
20
c. Neutral
d. Disagree
e. Strongly Disagree
15
b. Non-financial incentives
c. Both
9
26
18
b. Satisfied
29
c. Neutral
d. Dissatisfied
e. Highly Dissatisfied
18
b. Agree
29
c. Neutral
d. Disagree
e. Strongly Disagree
30
b. Somehow
20
c. No
0
112
Q.7. In the last year, have you had opportunities to learn and grow?
a. Yes Always
25
b. Somehow
15
c. Finds Difficult
10
25
b. Target Achievement
10
c. Professional Skills
d. Communication Skills
15
b. Agree
18
c. Neutral
11
d. Disagree
e. Strongly Disagree
15
b. Agree
27
c. Neutral
d. Disagree
e. Strongly Disagree
12
b. Agree
23
c. Neutral
d. Disagree
9
113
e. Strongly Disagree
10
b. Agree
23
c. Neutral
d. Disagree
e. Strongly Disagree
b. Agree
26
c. Neutral
d. Disagree
e. Strongly Disagree
Q.14. Do you feel that your superiors commitment towards job is good?
a. Yes
47
b. No
c. Occasionally
114