38544964 employee retention in hcl

7/31/2019 38544964 Employee Retention in Hcl

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EMPLOYEE RETENTION IN HCL

submitted in

partial fulfillment for the award of the degree ofMasters of Business Administration ,

Punjab Technical University, Jalandhar

(2000-11)

Submitted to: Submitted by:

Name: Simranjeet kaur

RBIEBT (MBA) University Roll no.

____________________________________________________________

Rayat & Bahra Institute of Engineering and Bio- Technology (MBA),

Sahauran, Kharar.


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DECLARATION

I the undersign herebydeclare that the project report entitled

written and submitted by me to RBIEBT, Sahauran in

partial fulfillment of the requirement for the award of M.B.A under the

guidance of my mentor , is my original

work and the conclusion drawn there in are based on the material

collected by myself. I hereby declare also this study has not been permitted

by me to publish anywhere.

Simranjeet kaur


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ACKNOWLEDGEMENT

I take the opportunity to express our gratitude to all the concerned people

who have directly or indirectly contributed towards completion of this

project. I extend my sincere gratitude towards

for providing the opportunity and resources to work on

this project.

I am extremely grateful to my mentor in

HCL for his guidance and invaluable advice during the project whose

insight encouraged me to go beyond the scope of the project and thisbroadened me learning on this project.


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PREFACE

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 problem 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.


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CONTENTS


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CHAPTER 1

INTRODUCTION

Companies today are forced to function in a world full of change and complexity, and it is

more important than ever to have the right employees in order to survive the surrounding

competition. It is a fact that a too high turnover rate affects companies in a negative way

and retention strategies should therefore be high on the agenda. When looking at this

problem area we found that there may be actions and tools that companies could use to

come to terms with this problem. Research told us that leadership, remuneration and

elements like participation, feedback, autonomy, fairness, responsibility, development andwork-atmosphere is important for job satisfaction and retention. 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.

RETENTION

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.

Employees today are different. 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


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IMPORTANCE OF EMPLOYEE RETENTION

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.

Loss of Company Knowledge: When an employee leaves, he takes with him valuable

knowledge about the company, customers, current projects and past history (sometimes

to competitors). Often much time and money has been spent on the employee in

expectation of a future return. When the employee leaves, the investment is not realized.

Interruption of Customer Service: Customers and clients do business with a company

in part because of the people. Relationships are developed that encourage continued

sponsorship of the business. When an employee leaves, the relationships that employee

built for the company are severed, which could lead to potential customer loss.

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.

Goodwill of the company: The goodwill of a company is maintained when the attrition

rates are low. Higher retention rates motivate potential employees to join the organization.

Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring a

new employee and then training him/her and this goes to the loss of the company directly

which many a times goes unnoticed. And even after this you cannot assure us of the

same efficiency from the new employeewould be left with no good employees. A goodemployer should know how to attract and retain its employees. Retention involves five

major things:

1) compensation

2) environment

3) growth


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4) relationship

5) support

WHY EMPLOYEES LEAVE THE ORGANISATION

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 dont

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 wont be able to perform it well and will try to find out reasons to

leave the job.

No growth opportunities: No or less learning and growth opportunities in the

current job will make candidates job and career stagnant.

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 overwork and work life imbalance: Job stress can lead to work life

imbalance which ultimately many times lead to employee leaving the organization.

Compensation: Better compensation packages being offered by other companies

may attract employees towards themselves. New job offer: An attractive job offer which an employee thinks is good for him

with respect to job responsibility, compensation, growth and learning etc. can lead

an employee to leave the organization.


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STRATEGIES FOR EMPLOYEE RETENTION

The basic practices which should be kept in mind in the employee retention strategies

are:

1. Hire the right people in the first place.

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.

4. Have faith in them, trust them and respect them.

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

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.


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HOW TO INCREASE EMPLOYEE RETENTION

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?


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Basic salary, these days, hardly reduces turnover. Today, employees look beyond the

money factor.

Employee retention can be increase by inculcating the following practices:

1. Open Communication: A culture of open communication enforces loyalty among

employees. Open communication tends to keep employees 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. Project based


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recognition also has great significance. The award can be in terms of gifts or

money.

3. Career Development Program: Every individual is worried about his/her career.

He is always keen to know his career path in the company. Organizations 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 bemade wherein an employee is able to relate his performance with the company

profits and hence will work hard. This bonus should strictly be 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 bi-annually, celebrating anniversaries,sports activities, et al.

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.

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


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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 its a survival issue. Money

can make an employee stay in an organization but not for long. The factors moreimportant than money are job satisfaction, job responsibilities, and individuals 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

organizations 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 cant

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.


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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 hes satisfied with the employer.

5. Taking measures to increase employee satisfaction will be expensive for the

organizations: The things actually required to improve employee satisfaction like

respect, career growth and development, appreciation, etc. cant be bought. They

are free of cost. An employer or management that reacts well to the employees

ideas and suggestions is enough for the employees to be retained.

MANAGERS 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 dont 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.


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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:

Creating a Motivating Environment: Team leaders who create motivating

environments are likely to keep their team members together for a longer period of

time. Motivation does not necessarily have to come through fun events such as

parties, celebrations, team outings etc. They can also come through serious events

e.g. arranging a talk by the VP of Quality on career opportunities in the field of

quality. Employees who look forward to these events and are likely to remain more

engaged.

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.

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.


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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 counselors as well.


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CHAPTER 2

REVIEW OF LITERATURE

Objective of the study

The main objective is to increase the understanding regarding employees retention in

relation to leadership style, remuneration and elements such as participation, feedback,

autonomy, fairness, responsibility, development and work-atmosphere

Research Design

Descriptive Design.

Research Problem

Scope of the study

The scope of the study covers in depth, the employee retention practices, modules,

formats being followed and is limited to the company Hcl and its employees.

Sources of data

Methods of data collection Communication, asking questions and receiving a response in person

Visiting the various organizations, libraries, internet and also preparation

of the questionnaire with the help of the project guide.

Sample Size

To understand the training and development scenario at Reliance Mobile and what the

trainee really feels about the training they have undergone and further what kind of


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training they look for. Do they really look for any kind of training or not? To study the

above aspect we covered almost about 40 people from almost all the department at of the

company Reliance Mobile

Sample area

Statistical tools used for interpretation and analysis

Primary data collected through questionnaires and informal interviews.

Secondary data collected through magazines, journals, websites, and other

corporate publications

Limitations of the study


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CHAPTER 4

INTERPRETATION AND ANALYSIS

Q1.I get the best possible work environment

Response No. Of Respondents Percentage

Agree 9 65

Strongly Agree 2 14

Neutral 3 21

Disagree 0 0

Strongly Disagree 0 0

Total 14 100

Interpretation:-

The above chart indicates that employees are satisfied with working environment

provided by organization.

64%14%

22%

Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q 2. I take pride in the company.

Response No. of respondents Percentage

Agree 8 57

Strongly Agree 4 29

Neutral 2 14

Disagree 0 0


Total 14 100

INTERPRETATION:-

The above chart indicates that the most of the employee feel pride to work in the

company.

57%29%

14% Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q 3. My organization lives its corporate values.


Agree 5 36

Strongly Agree 2 14

Neutral 4 29

Disagree 2 14


Total 14 100

INTERPRETATION:-

50% people are in favor with above statement but 50% people have doubt about it.

36%

14%

29%

14%

7% Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q 4. My organization provides employee appreciation program


Agree 3 21

Strongly Agree 2 14

Neutral 6 44

Disagree 3 21


Total 14 100

INTERPRETATION:-The above graph indicates that organization provides employee appreciation

program but not for all employees.

22%

14%

43%

21%

Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q 5. We celebrate personal events in the work place such as birthday.


Agree 5 36

Strongly Agree 8 57

Neutral 1 7

Disagree 0 0


Total 14 100

INTERPRETATION:-

This graph indicates that organization fully motivate its employees by celebrating

their birthday and other parties.

36%

57%

7% Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q6 My organization provides training and development opportunities to the

employees


Agree 5 36

Strongly Agree 2 14

Neutral 5 36

Disagree 2 14


Total 14 100

INTERPRETATION:-

The above graph indicates that organization provides training and development

opportunities to the employees adequately. Moreover, it needs to give more focusthis issue.

36%

14%

36%

14%Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q7. My organization has an effective mentoring or budding system?


Agree 7 50

Strongly Agree 1 7

Neutral 5 36

Disagree 1 7


Total 14 100

INTERPRETATION:-

The above graph shows that organization has an effective mentoring or budding

system

50%

7%

36%

7% Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q8. The compensation plans are managed fairly and equitably in the organization.


Agree 4 29

Strongly Agree 0 0

Neutral 8 57

Disagree 0 0


Total 14 100

INTERPRETATION:-

The above graph indicates that the organization does not much take care about the

compensation plans for employees.

29%

57%

14%Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q9. The organization offers profit sharing plans to the employees.


Agree 4 29`

Strongly Agree 0 0

Neutral 5 36

Disagree 2 14


Total 14 100

INTERPRETATION:-

The above graph indicates that organization has not sufficient offers for profit

sharing plans to the employees

29%

36%

14%

21%Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q10. Organization is able to retain employees:


Agree 8 58

Strongly Agree 2 14

Neutral 3 21

Disagree 1 7


Total 14 100

INTERPRETATION:-

The above graph indicates that employees are fully preferred to work in thatorganization and also company has full ability to retain the employees.

57%14%

22%

7% Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q11. Manager building personal bonds with their subordinates.


Agree 5 35

Strongly Agree 5 36

Neutral 4 29

Disagree 0 0


Total 14 100

INTERPRETATION:-

The above Chart indicates full fledge favor of the manager of company to build

personal bonds with their subordinates

36%

36%

28%

Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q12. Reward systems exist in organization.


Agree 6 44

Strongly Agree 1 7

Neutral 3 21

Disagree 1 7


Total 14 100

INTERPRETATION:-

The above Chart indicates that company preferred to give reward to deservingcandidates, but it should give more concentration to reward system because it is the

best source of motivating employees

43%

7%22%

7%

21%Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q13. Company has exciting challenges.


Agree 5 36

Strongly Agree 4 29

Neutral 1 7

Disagree 2 14


Total 14 100

INTERPRETATION:-

The above Chart indicates that company need to be more challenging to theircompetitors in order to get the higher rank in the corporate.

36%

29%

7%

14%

14% Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q14. Employee has Freedom and autonomy


Agree 6 43

Strongly Agree 3 21

Neutral 4 29

Disagree 0 0


Total 14 100

INTERPRETATION:-

The above Chart indicates that company gives the freedom to the employees, and

employee has right of self-sufficiency to take decisions.

43%

21%

29%

7%Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q15. Job has exciting challenges.


Agree 4 29

Strongly Agree 4 29

Neutral 3 21

Disagree 1 7


Total 14 100

INTERPRETATION:-

The above Chart indicates the different opinions; it may be because of the differentjob responsibility of the different employees. But overall job has exciting challenge

with in organization

29%

29%

21%

7%

14% Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q16. Manager clearly defines job responsibilities.


Agree 4 28

Strongly Agree 4 29

Neutral 4 29

Disagree 1 7


Total 14 100

INTERPRETATION:-

The above Chart indicates that manager is fully able to describe the responsibilityof job to employees. Manager himself is pretended to be fully responsible towards

his employees and job.

28%

29%

29%

7%7% Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q17. Manager encourages for high achievement.


Agree 5 36

Strongly Agree 7 50

Neutral 2 14

Disagree 0 0


Total 14 100

INTERPRETATION:-

The above Chart is fully favorable to the manager to give confidence and give fullsupport to his employees to achieve the goals of companies. This the good sign for

the companys growth.

36%

50%

14%Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q18. Manager gets support and teamwork from other areas.


Agree 5 37

Strongly Agree 2 14

Neutral 2 14

Disagree 3 21


Total 14 100

INTERPRETATION:-

The above Chart indicates that manager does not much preferred to get supportfrom other areas. He need to give more focus on this area.

36%

14%14%

22%

14%Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q19. Manager provides continuous feedback.


Agree 8 58

Strongly Agree 2 14

Neutral 2 14

Disagree 1 7


Total 14 100

INTERPRETATION:-

Feedback is mandatory to control over the retention rate of company. Managerfocus on continuous feedback, thats why he able to retain his employees.

57%15%

14%

7%7%

Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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Q20. Organization spends more time and money on retention program rather than

on recruitment.


Agree 5 36

Strongly Agree 1 7

Neutral 4 29

Disagree 2 14


Total 14 100

INTERPRETATION:-

To control the retention rate would be more profitable rather than to spend money

on new employee. Company gives more focus on the retention rate than the

recruitment of new employee.

36%

7%29%

14%

14% Agree

Strongly Agree

Neutral

Disagree

Strongly Disagree


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CHAPTER 5

FINDINGS OF THE STUDY


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CHAPTER 6

SUGGESTIONS AND RECOMMENDATIONS

To control the retention rate would be more profitable for the organization. Hcl almost

fulfill the issue of employee retention but there is something to improve as discuss

above result.

Show me the money is not the singular solution. While bonuses, stock-options, and

flextime are appreciated, what employees really want is some assurance of continued

employability. Here are the most popular worker retention strategies:

78% conferences and seminars

67% tuition reimbursement

67% managerial training

58% pay for performance

57% flextime

57% interpersonal skills training

55% technical training


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CHAPTER 7

CONCLUSION


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REFERENCES


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ANNEXURE

38544964 employee retention in hcl

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