Employee Retention

What is Employee Retention?

Employee retention refers to the ability of an organization to retain its employees for the maximum period of time. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period).

Why to Retain Employee?

Employer wants to reduce:
Training Cost Recruitment Cost Cost of Turnover

Loss of good Talent Interruption of Customer Service Turnover lead to more Turnover Efficiency Loss

Retention Involves

Compensation & Benefits

This constitutes the largest part of retention process. Employee always have high expectation regarding their compensation & packages. These includes:
Salary & Wages Bonuses Health Insurance After Retirement Benefits

Environment
This the another biggest factor which contributes to employee retention. Motivated employee always wants to contribute to work outside of their specific job description. The working environment should motivate the employee towards their works.

Growth
Growth is an integral part of every individual s career. If an employee can t foresee his path of career development in his current organization, then there is a chance that he will leave the organization as soon as he gets the better opportunity.

Relationship
Sometimes the relation with the management and the peers become the reason for an employee to leave the organization. The management is often not able to provide an employee a supportive work culture and environment. A supportive work culture helps grow employee professionally & boost employee satisfaction. There are times when an employee starts feeling bitterness towards the management or peers, which leads to less satisfaction and eventually attrition.

Support
Employee today are asking for a workplace that helps them balance the demands of their work & family lives, rather than forcing them to choose one over another. Employer support then with:
Special schemes for their child education or scholarship. Medical benefits for family. Flexible time or work from home. Creche. Company inviting spouse to be part of their organization.

Why Employee Leave?

Job and personality mismatch. Work culture mismatch. No growth opportunity. Lack of appreciation. Lack of trust & support in coworkers, seniors & management. Stress from overwork & work life imbalance. Compensation New job offer. For Higher education Misguidance by the company. Policies and procedures are not conducive.

Changes in estimated employment based on various quarterly survey results (In lakh)

BPO Industry
BPO industry in the country which is expected to employ around one million people by 2008 is facing the challenge of finding quality human resources given the current attrition rate of around 50%. Analysts say attrition rates vary by 20%-40% in some firms, while the top ones averages at least 15%. Nasscom in a report said the outsourcing industry was expected to face a shortage of 262,000 professionals by 2012. The size of the Indian BPO market is likely to be around $9-12 billion by 2006 and will employ around 400,000 people, ICRA said in its Indian BPO industry report. Mercer India said the industry should look beyond the traditional areas of recruitment and thought should be given to employ physically challenged people and housewives.

Employee Benefits Provided By Majority Of the BPO Companies

Group Medi-claim Insurance Scheme Personal Accident Insurance Scheme Subsidized Food and Transportation Recreation, Cafeteria, ATM and Concierge facilities Corporate Credit Card Cellular Phone / Laptop Personal Health Care (Regular medical check-ups) Loans Educational Benefits Performance based Flexi-time Flexible Salary Regular Get together and other cultural programs Wedding Day Gift Employee Referral Scheme Employee Stock Option Plan

Retention Strategies or Theories

Valence is the degree to which the rewards offered by an organization align with the needs employees seek to fulfill. High valence indicates that the needs of employees are aligned well with the rewards system an organization offers. Conversely, low valence is a poor alignment of needs with rewards and can lead to low job satisfaction and thereby increase turnover and decrease retention. Expectancy theory details has several factors that can lead to high job satisfaction and high retention rates for organizations. Increasing expectancy in an organization can be done by training employees and thereby making them more confident in their abilities. Increasing instrumentality within an organization will be part of implementing an effective rewards system for attainment of specific goals and accomplishments

Retention Strategies used In BPO

Communications - Getting Your People to Care Set Clear Expectations Proper Rewarding
Build a high degree of recognition value into every reward you offer. Reduce entitlements and link as many rewards as possible to performance. Troubleshoot your reward system to make sure that what it is rewarding is what you really want to happen. Reward promptly. Give employees a choice of rewards Increase the longevity of your rewards. Be continually vigilant of demotivators that may undermine your organization's best efforts to provide power rewards, and reduce them promptly.

Retention Strategies used in BPO

The quality of the supervision an employee receives is critical to employee retention. The ability of the employee to speak his or her mind freely within the organization is another key factor in employee retention. Talent and skill utilization is another environmental factor, key employees seek in workplace. The perception of fairness and equitable treatment is important in employee retention.
A career-oriented, valued employee must experience growth opportunities within your organization.

Time to meet with new employees to learn about their talents, abilities and skills. Meet with each employee periodically. Never, never, ever threaten an employee's job or income.

About HCL
HCL Enterprise is a 36-year-old, founded in 1976 is leading Global Technology and IT enterprise, with USD 6 billion revenue, 88000 professionals and operations spanning 31 countries. Its range of offerings spans Product Engineering, Custom & Package Applications, Business Process Outsourcing, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. Since its inception, HCL Enterprise has grown to become what it is today under the strong leadership and guidance of Shiv Nadar (Founder, Chairman and Chief Strategy Officer). HCL Enterprise comprises two companies listed in India, namely HCL Infosystems & HCL Technologies. HCL Infosystems deals with hardware, system integration, network and ICT distribution, solely for the Indian market. HCL Technologies on the other hand, focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 29 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences & Healthcare, Hi-Tech & Manufacturing, Telecom and Media & Entertainment (M&E). HCL Technologies caters to the global market in areas like product engineering, research & development, enterprise & custom applications, infrastructure management, and Business Services.

HCL BSERV
HCL Business Services, a division of HCL Technologies Limited started its venture early in 2001 and is now a dominant player in the BPO field drawing revenue of USD 215 million with over 10,200+ professionals operating out 26 delivery centers across India, UK and USA. Transformation and innovation is core to HCL BSERV, which make them grew from a traditional BPO to the NeXt Generation BPO. World-class standards, multi-geographic delivery model with domain orientation have always been some of the doyens of HCL BSERV & offers 24X7 multi-channel multi-lingual support in eight European languages. HCL BSERV focuses on key domains such as Financial Services, Pharma & Health Services, Telecom, Energy & Utility, Mfg. , Retail & CPG, Media, Publishing, Entertainment, Government , Travel & Logistics. This apart, the company services various areas of operations that include Industry Specific Services, FAO-Finance & Accounting Outsourcing, CRMCustomer Relationship Management, HRO-Human Resource Outsourcing, SCM-Supply Chain Management & KPO-Knowledge Process Outsourcing.

HCL BSERV excels at developing reliable and scalable solutions for essential business processes, consecutive with industry best practices and metric-based Quality norms supported by a thriving technology infrastructure, strong human resources, a customized training program and transition framework. HCL core value of Employee First has inspired employees to deliver world class service and continuously create value for our customers. Accolades for HCL Business Services:
Ranked in the 'Leaders' category of the Global Outsourcing 10, International Association of Outsourcing Professionals (IAOP) 2010 Tops the Black Book of Outsourcing 2009 lists of Top 50 Best Managed Global Outsourcing Vendors, and Top Cross Industry BPO vendors Ranked No. 1 Employer in India and Best Employer in Asia by Hewitt Associates, 2009 Ranked 3rd in the Employee Satisfaction Survey by DQ-IDC, 2008 Won Technology Award at the BPO Industry Awards by Indiatimes, 2008 HCL NI won European Call Centre of the Year 'Best People Practice' Award by Call Centre Focus (CCF), 2008 HCL BPO among the Top 5 service providers in the UK market for Life & Pensions Won 2008 CIO 'Bold 100' award - IDG India 2008 Ranked among the Top 10 ITeS-BPO companies in India (NASSCOM & Dataquest) First BPO company successfully appraised at Maturity level 3 of People CMM First Indian BPO to be COPC certified for Collection services Third BPO in the world to be COPC certified for Collections services Largest BPO service provider in Northern Ireland Special award for 'consistent excellence for outsourcing practice across all disciplines' by the National Outsourcing Association (NOA '07)

Attrition Rate
Percentage
45 40 35 30 25 20 15 10 5 0 Voice Non Voice Technical Non Technical Percentage

Reason for Attrition

Monotony of job Less Complex Basic level job, so limited growth opportunity. Perception Stop gap arrangement Young age group with less salary and increment

Retention Strategy
Bi-annual appraisal FEP Further Education Program
Shine IIM Certification

Bond Contract On the spot awards recognition award Hourly incentive for extra hour worked Performer of the week Discounts available like Sodexo coupon, pizza hut discount, etc. Internal job Posting International Job Posting.

Thank You