Employee Retention in E recruitment Industry

Contents
1

Abstract 3 Introduction 4 Review

Literature 5 a. Background b. Indian Scenario

a. b. c. d. e. f.

Research 7 Primary Objective Secondary Objective Area of study Research Instrument Questionnaire Design Statistical tool and technique Research 8

Objective

Findings.

Conclusions. 11 a. Results b. Limitation

Bibliography 12

References.

ABSTRACT
We are pleased to present our working group report on the Sales Employee Retention in ERecruitment Industry in India. The research was conducted in E-Recruitment Industries through Paper Survey, totaling 60 Nos. The Respondent comprised of Sales employees within various channels of E-Recruitment Companies (for eg., Monster & Shine). The questionnaire content was framed on the basis of exit interviews of sales personnel in erecruitment companies. Collection of Data took approximate 2-3 days. The questionnaire was created keeping in mind the high attrition rate in the Industry. Some of the possible factors were drawn from the exit interview data of sales people from previous years. Several Conclusions can be drawn from the analysis of the findings of this report, most notably the fact that employees look for salary in an organization then followed by growth opportunities.

INTRODUCTION
The greatest challenge faced today by organizations the world over is retaining talented employees in the organization. A debate raging since many decades has been as to whether to retain them is more important than finding a successor to the vacant position. 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 project. Employee retention is beneficial for the organization as well as the employee. Employee turnover is one of the largest though widely unknown costs an organization faces. While companies routinely keep track of various cost such as supplies and payroll, few take into consideration how much employee turnover will cost them. Ernst & Young estimates its cost approximately $120,000 to replace 10 professionals. Retaining employees not only helps to reduce cost but also helps to retain talented employees from getting poached. This report is based on survey done on sales people in e-recruitment firms like Monster.com, Shine.com etc. The organizations are mainly sales organizations with most emphasis on sales people and attrition faced by them is also most in this department. Typically these firms have various channels of sales, ranging from retail, key accounts to telesales. Various factors contribute to their attrition as gauged from the exit interviews.

LITERATURE REVIEW
A. Background.

E Recruitment industry E-recruitment, also known as online recruitment, is the use of technology to attract and recruit candidates. The use of technology within human resource management has continued to increase over the years. E-recruitment has the following advantages over traditional way of recruitment: Centralized platform Streamline workflow Better Communication and increased productivity Less Paper Candidates Pool Centralized reports Save cost and time These organizations sell various core online solutions in the form of database access, job postings and add - ons like branding and advertising options to business organizations through their sales teams. The sales team forms the major organization population, organized into various teams such as retail, key accounts, telesales for location in India as well as abroad. The competition is cut throat and the sales staff faces tremendous pressure to close deals and get business. Organizations use multiple choices as sources of recruitments and each e-recruitment firms sales representative faces the challenge of competing with the other.

Employee Retention Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time. The greatest challenge faced today by organizations the world over is retaining talented employees in the organization. Employees are dissatisfied with the salaries, perks and benefits offered by the organization they are currently in. Further they may be dissatisfied with career opportunities in the organization or even its personnel policies in general.

Recruitment today has become both a highly specialized area and a costly exercise too. Once an individual joins an organization, costs incurred on him include Acquisition costs i.e. cost of recruitment, selection and placement &Training Costs i.e. induction, specialized training and on the job training. Besides when he separates from the organization, the company faces the cost of his position lying vacant besides having to pay his separation pay and such dues.

Hence organizations today are focusing on minimizing employee turnover with great gusto. In many organizations today, Exit interviews are conducted to obtain feedback from separated employees about their stint in the organization. This Exit interview is conducted in two phases. Phase I is conducted as soon as the employee's boss receives his resignation letter. The objective of his meeting is to ascertain reasons as to why the employee wishes to leave the organization. If the employee is really worth retaining, attempts are made to eliminate dissatisfiers if any and retain his services for the organization. The second phase of the exit interview should be conducted after the employee who has separated has been paid all his dues and his accounts with the company have been settled. This ensures that the separated employee provides candid and unbiased feedback about the organizations procedures, policies and problem areas. All such feedback should be recorded on paper and circulated to the top management. In order to ensure that a good discussion is possible, the exit interview should be held in privacy and conducted by a senior employee of the organization who is not the boss or departmental head of the separated employee.

B.

Indian Scenario

India, with its huge population, would not usually be one of the first countries you might think about when considering employee retention problems. Yet, business leaders there are increasingly concerned about retaining qualified workers. The attrition rate in India is as high as 60%. Forward-looking companies are forming their strategies to first attract the top talent, then retain that talent and finally at getting the best out of them. Some local companies like the Aditya Birla Group and the Tata Group, have developed a massive brand name by doing this. 6

Retention involves four major things: Compensation Environment Growth Opportunities. Superior Subordinate Relationship

RESEARCH OBJECTIVE
Primary Objective: Retention of sales employees in e recruitment industry. Secondary Objective:

The secondary objective helps us identify factors causing attrition and identifying solutions or possible areas of improvement to retain employees in an organization. Area Of study

The area of study is confined to employees in e- Recruitment industries, like Monster & Shine. Research Instrument

The structured questionnaire is used as the research instrument for the study.

Questionnaire Design

The questionnaire designed for the research study is a structured questionnaire in which all the questions are predetermined before conducting the survey. The form of questions is scalar type.

The scales used to evaluate the questions are: o Dichotomous scale (Yes or No)

o Likert 5 point scale (Poor, Fair, Good, Better, Excellent & Extremely satisfied, Satisfied, Neither satisfied nor dissatisfied, Dissatisfied, Extremely dissatisfied).

Statistical tool and technique. Percentage analysis Percentage = (No. of respondents/total no of respondents)*100

RESEARCH FINDINGS

The research gathered gave details on various parameters of employees interest. It reflected various attributes that employees get motivated with and which may be the prime reason for them to either leave the organization in case of lack of it or remain with the organization in its presence. The above pie chart shows the relative importance of motivating factors for employees drawn from the questionnaire.

The questionnaire sample is as follows:

Questionnaire: Please tick the option which is most appropriate for you.
1 a b c How long have you been working in this organization? 0 - 6 months 6 months - 12 months 12 months and above 9

Rate your experience on the basis of following factors: Factors Poo r Fa ir Goo d Bette r Excellen t

a b c d e f g h i j k l n 3 a b 4

Salary Superior Relationship Initial training/Orientation process Incentives Work Hours Employee engagement Programs Physical working conditions Co-operation among all employees and management Team events / get together Promotions & perks Training & Seminars Opportunity for growth /career path Performance review process Do you think the organization is well organized in terms of processes and policies? Yes No Rate your relationship with your boss/superior Factors Poo r Fa ir Goo d Bette r Excellen t

m Sharing of information

a b c d e 5 a b 6 a

Supervision and timely guidance Mentoring Fair reviews & feedbacks Proactive involvement in subordinate's career development Flow of communication Do you think the general atmosphere of the organization is positive for employees? Yes No Would you like to recommend your peers /acquaintances to join this organization? Yes 10

b 7

No What is the most important motivating factor for you as an employee? Factors Poo r Fa ir Goo d Bette r Excellen t

a b c d e f 8

Salary Incentives Work atmosphere Opportunities for growth Excellent supervisor/boss Opportunities for learning / lateral shifts Overall how satisfied are you with the company? Factors Poo r Fa ir Goo d Bette r Excellen t

a b c d e 9 a b 1 0 a b c d e

Extremely satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Extremely dissatisfied Do you feel positive about the future prospects of this organization? Yes No Which of the following factors would you like to make any changes? Salary Incentives Work atmosphere Opportunities for growth Excellent supervisor/boss

CONCLUSIONS
A. Results i. Salary and growth opportunities are the most important factors and are preferred ones by employees. 11

ii.

About 46.67% of employees have stated that they would like to see a change in the salary factor, whereas, 33.33% have opted growth opportunities as a factor for change in their organizations. Factors that motivate employees include: Growth opportunities 35% Salary 17% Good working conditions 23% Incentives 12%

iii.

B. Limitations

The vastness of the study given the time frame and available resources has restricted the scope of the research study and lead to certain limitations. i. ii. The sample size selected has been restricted to 60 respondents, which might seem as an inappropriate sample size to conduct the research. E recruitment being a niche industry, availability of relevant data was an impediment.

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BIBLIOGRAPHY AND REFERENCES

http://www.cipd.co.uk/subjects/recruitmen/onlnrcruit/onlrec.htm

http://www.jobsdb.com/Dimension/DimBrochureP3.pdf

http://www.monsterindia.com/intermediate.html

http://www.peoplestrong.com/Downloads/Special_BT_%20StoryAttrition.pdf

http://www.scribd.com/doc/21300960/Employee-Retention-Project-Report

http://www.business-standard.com/india/storypage.php?autono=261126

http://www.sourcingmag.com/blog/archive/india_based_attrition_rates_as_ high_as_60.html

http://www.business-standard.com/india/storypage.php?autono=261126

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