employee retention project final copy

A

PROJECT REPORT

ON

EMPLOYEE RETENTION IN THE OBEROI UDAI VILAS UDAIPUR

A Training Project Report

Sir Padampat Singhania University, Udaipur (Raj.)

PROJECT GUIDE: SUBMITTED BY: BY:

TUSHAR JOSHI PROF. SUSHIL J. LALWANI MBA 2nd Year

(Human Resource)

ACKNOWLEDGEMENTS

There are many people who have provided invaluable assistance during the analyzing,

writing and completion of this Project report on “Employee Retention” In particular, I

would like to express my sincere appreciation to HR manager Mr. Raj Singh Sisodia

who provided many forms of assistance, but best of all always kept us in good spirits

through the completion of this Project, and would also like to mention names of some of

the staff member Ms. Arpana Gangwal, Mr. Sidhant Swarup Kashiva, Mr. Alwin

Diwakaran, Ms. Kriti Sharma for their support and help. All of them provided support for

this project and contributed to reviewing and editing the report.

I also thank all of the department heads and staff for providing the data and information

on the programs covered in this report. Without their time and interest this project would

not have been possible.

Tushar Joshi

MBA (Human Resource)

PREFACE

The completion of this project has left us indebted to many persons whom are in the

word. Mr. W. Wilson can be expressed as “I not only used all the brain I had but all

could borrow.”

It is my great privileged to have the vocational training in such an esteemed business

empire The Oberoi Udai Vilas, Udaipur.

The practical training is an essential requirement for an MBA student. The student has

to take the training for the pre-described period as per the university norms. The

purpose of training is to help to student to gain the industrial experience. Moreover, as

for the utility of concerning, it can be said that the student gets a chance during her

theoretical knowledge about the subject in field work & to clear the difficulties in a better

way of looking the whole process in the person. I took my training at “Udai Vilas” a unit

of The Oberoi Group of Hotels and Resorts.

CONTENTS

ACKNOWLEDGEMENT

PREFACE

CHAPTER-1 COMPANY PROFILE

ABOUT OBEROI GROUP

MISSION & VISION

CHAPTER-2 THE OBEROI GROUP:-AN OVERVIEW

THE OBEROI UDAIVILAS

THE OBEROI GROUP - DHARMA

FOUNDER CHAIRMAN

CHAIRMAN & CEO

AWARD & RECOGNITION

CHAPTER-3 PROJECT PROFILE

EXECUTIVE SUMMERY

IMPORTANCE OF EMPLOYEE RETENTION

CHAPTER-4 RESEARCH METHODOLOGY

CHAPTER-5 RETENTION MANAGEMENT (CASE STUDY)

CHAPTER-6 EMPLOYEE RETENTION STRATEGIES

CHAPTER-7 CASE STUDIES

CHAPTER-8 FINDINGS

CHAPTER-9 SUGGESTIONS

CHAPTER-10 CONCLUSION

CHAPTER-11 RECOMMENDATIONS

CHAPTER-12 BIBLIOGRAPHY

COMPANY PROFILE

The Oberoi Group

The Oberoi Group, founded in 1934, operates 28 hotels and three cruisers in five

countries under the luxury ‘Oberoi’ and five-star ‘Trident’ brands. The Group is also

engaged in flight catering, airport restaurants, travel and tour services, car rentals,

project management and corporate air charters.

Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of

service, luxury and quiet efficiency. Internationally acclaimed for all-round excellence

and unparalleled levels of service, Oberoi hotels and resorts have received innumerable

awards and accolades.

A distinctive feature of The Group’s hotels is their highly motivated and well trained staff

that provides exceptionally attentive, personalized and warm service. The Group’s new

luxury hotels have established a reputation for redefining the paradigm of luxury and

excellence in service amongst leisure hotels around the world.

Trident hotels are five-star hotels that have established a reputation for excellence and

are acknowledged for offering quality and value. These hotels combine state of the art

facilities with dependable service in a caring environment, presenting the ideal choice

for business and leisure travelers. At present there are nine Trident hotels in India.

These are located in Mumbai at Bandra Kurla and Nariman Point, Gurgaon (Delhi

National Capital Region), Chennai, Bhubaneswar, Cochin, Agra, Jaipur and Udaipur.

The Oberoi Group also operates a Trident hotel in the Saudi Arabian city of Jeddah.

The last decade has witnessed the debut of new luxury Oberoi leisure hotels in India

and abroad. In India, these hotels include The Oberoi Rajvilas, Jaipur; The Oberoi

Amarvilas, Agra; Wildflower Hall, Shimla in the Himalayas; The Oberoi Vanyavilas,

Ranthambhore; The Oberoi Cecil, Shimla and The Oberoi Udaivilas, Udaipur.

Overseas, the new hotels include The Oberoi, Lombok in Indonesia, The Oberoi,

Mauritius and The Oberoi, Sahl Hasheesh in Egypt. The Oberoi Zahra, Luxury Nile

Cruiser, Egypt was launched in 2007.

The Group’s commitment to excellence, attention to detail and personalized service has

ensured a loyal list of guests and accolades in the worldwide hospitality industry.

Recognizing the importance of quality training in hospitality management, The Oberoi

Group established The Oberoi Centre of Learning and Development in New Delhi in

1966. Today, this institution is considered amongst the best in Asia with approximately

100 students graduating each year.

The Oberoi Group is committed to employing the best environmental and ecological

practices in technology, equipment and operational processes. The Group also supports

philanthropic activities that range from education to assistance for the mentally and

physically challenged. The Group is also a keen contributor to the conservation of

nature and of cultural heritage.

The Oberoi Group - Mission

Our Guests

We are committed to meeting and exceeding the expectations of our guests through our

unremitting dedication to every aspect of service.

Our People

We are committed to the growth, development and welfare of our people upon whom

we rely to make this happen.

Our Distinctiveness

Together, we shall continue the Oberoi tradition of pioneering in the hospitality industry,

striving for unsurpassed excellence in high-potential locations all the way from the

Middle East to Asia-Pacific.

Our Shareholders

As a result, we will create extraordinary value for our stakeholders.

The Oberoi Group - Vision

We see an organization which aims at leadership in the hospitality industry by

understanding its guests, and designing and delivering products and services which

enable it to exceed their expectations. We will always demonstrate care for our

customers through anticipation of their needs, attention to detail, distinctive excellence,

warmth and concern.

We see a lean, responsive organization where decision making is encouraged at

each level and which accepts change. An organization that is committed and responsive

to its guests and other stakeholders.

We see a multi-skilled workforce, which consists of team players who have pride

of ownership in translating the organization’s vision into reality.

We see an organization where people are nurtured through continuous learning

and skill improvement, and are respected, heard and encouraged to do their best.

Oberoi is recognized as best practice for training and developing its people.

We see a more multinational workforce which has been exposed to different

cultures, problems and situations and can use its experiences to enrich the local

employees whether in India or overseas.

We see the world dotted with hotels of The Oberoi Group, in strategic

commercial and resort locations.

We see user-friendly technology enhancing value for our customers and helping

our personnel by making information more accessible.

We see an organization which is conscious of its role in the community,

supporting social needs and ensuring employment from within the local community.

We see an organization which is committed to the environment, using natural

products and recycling items, thus ensuring proper use of the diminishing natural

resources.

The Oberoi Udaivilas

Udaipur has been rated as the best city in the world by Travel + Leisure, USA in

the 2009 Readers' Poll.

Udaipur, in the heart of Rajasthan, is a city of majestic palaces and beautiful lakes.

Here, adorning the banks of Lake Pichola and standing witness to the historic City

Palace, The Oberoi Udaivilas captures all the romance and splendor of a royal era.

Conceived as a traditional Indian palace, The Oberoi Udaivilas showcases the rich

heritage of the Mewar region of Rajasthan with its rambling courtyards, gentle rippling

fountains, reflection pools and verdant gardens. Grand architecture inspired by the

palaces of Rajasthan present a picture of majesty resplendent with pavilions and domes

that lead you to a journey of discovery. Interiors embellished with decorative domes,

hand painted frescoes, intricate mirror work and beautifully crafted artifacts create an

ambience of regal splendor.

An enchanting boat ride across Lake Pichola transports you to the ceremonial welcome

that awaits you at resort. Rooms with terraces that open on to semi-private swimming

pools present exquisite views and are a unique feature of Udaivilas. Magnificently

decorated suites with private swimming pools and outdoor dining pavilions are exclusive

retreats.

Fine international cuisine, authentic flavors of Rajasthan or a quiet drink are all

presented with views of the City Palace and Lake Pichola.

The luxurious spa with its own swimming pool overlooks the lake and is a haven of

serenity. Trained therapists pamper body and soul with rejuvenating treatments. The

resort also offers the opportunity to undertake private Yoga, meditations and Pranayam

sessions with the resident Yoga teacher or explore the city steeped in the romance of

the oldest living dynasty in the world.

At The Oberoi Udaivilas, the magnificent setting combines with royal service to make

your holiday a journey into the romance and grandeur of another century. This resort

offers an experience created exclusively for those who know there is nothing like too

much luxury.

The Oberoi Group - Dharma

We, as members of The Oberoi Group are committed to display through our behavior

and actions the following conduct, which applies to all aspects of our business:

Conduct which is of the highest ethical standards - intellectual, financial and

moral and reflects the highest levels of courtesy and consideration for others.

Conduct which builds and maintains teamwork, with mutual trust as the basis of

all working relationships.

Conduct which puts the customer first, the Company second and the self last.

Conduct, which exemplifies care for the customer through anticipation of need,

attention to detail, excellence, aesthetics and style and respect for privacy, along with

warmth and concern.

Conduct which demonstrates a two-way communication, accepting constructive

debate and dissent whilst acting fearlessly with conviction.

Conduct which demonstrates that people are our key asset, through respect for

every employee, and leading from the front regarding performance achievements as

well as individual development.

Conduct which at all times safeguards the safety, security, health and

environment of our customers, employees and the assets of the Company.

Conduct which eschews the short-term quick fix for the long-term establishment

of a healthy precedent.

Rai Bahadur M.S. Oberoi

Founder Chairman, The Oberoi Group

Early Life

Rai Bahadur Mohan Singh Oberoi was born on 15th August, 1898 in erstwhile undivided

Punjab, which is now in Pakistan. He was only six months old when his father died.

Success and fortune did not, therefore, come easily to him. Initiative, resourcefulness

and hard work, combined with the capability to face and overcome the most

overwhelming odds can best characterize this phenomenal entrepreneur.

Mr. M.S. Oberoi completed his primary education in Rawalpindi and moved to Lahore

for his Bachelor’s degree. Shortly thereafter, to flee the ravages of a virulent plague, he

went to seek his fortune in Shimla, the summer capital of British India. Arriving

penniless, he found a job at a monthly salary of INR 50, as the front desk clerk at the

Cecil Hotel. Today, The Oberoi Group owns the hotel The Oberoi Cecil where the young

Mr. Oberoi found his métier.

The diligence, enthusiasm and intelligence displayed by Mr. Oberoi impressed Mr.

Grove, the manager of the hotel. A quick learner, Mr. Oberoi did not restrict his efforts to

fulfilling the job description of a desk clerk but sought and shouldered additional

responsibilities. A few years later, when Mr. Clarke acquired a small hotel he asked Mr.

Oberoi to assist him. It was here, at Clarkes Hotel, that Mr. Oberoi gained firsthand

experience in all aspects of operating a hotel.

Budding Entrepreneur

In 1934, Mr. Oberoi acquired his first property, The Clarkes Hotel, from his mentor by

mortgaging his wife’s jewellery and all his assets. Four years later, he signed a lease to

take over operations of the five hundred rooms Grand Hotel in Calcutta that was on sale

following a cholera epidemic. With his customary confidence and sheer determination to

succeed, he was able to convert this hotel into a highly profitable business venture.

Over several years, Mr. Oberoi had purchased shares in Associated Hotels of India

(AHI), which owned Cecil and Corstophans hotels in Shimla, Maidens and Imperial

hotels in Delhi and a hotel each in Lahore, Murree, Rawalpindi and Peshawar. In 1943,

Mr. Oberoi acquired controlling interest in AHI. He thus became the first Indian to run

the country’s largest and finest hotel chain. In the tumultuous years just prior to Indian

independence, Mr. Oberoi met and intimately interacted with the would-be leaders of

Free India, all of whom were, at one time or other, guests at his hotels.

International Pioneer

Having consolidated his early ventures, Mr. Oberoi became the first Indian hotelier to

enter into an agreement with an internationally renowned hotel chain, to open the first

modern, five-star hotel in the country. The Oberoi Inter Continental, in New Delhi

opened in 1965. The I-Con, as it became popularly known, offered facilities that no

other hotel in the country matched and was India’s first luxury hotel.

This achievement was enhanced with the opening of the 35-storey Oberoi Sheraton in

Bombay, in 1973. Mr. Oberoi was the first Indian to work in association with

international chains to woo international travelers to India. This led to a heavy influx of

international travelers and foreign occupancy soared to an average of 85%. This

enabled the Oberoi Hotels to significantly contribute to India’s foreign exchange

earnings.

Another pioneering landmark was the establishment in 1966 of the prestigious Oberoi

School of Hotel Management, recognized by the International Hotel Association in

Paris. Considered India’s premier institute, the school is now known as The Oberoi

Centre of Learning and Development and continues to provide high quality professional

training in hospitality management.

Other notable firsts were the decision to employ women in his hotels and to establish a

chain of ancillary industries producing and supplying items like consumables and

stationery to ensure the highest quality. The Oberoi Group was also the first to start

flight catering operations in India, in 1959. The Oberoi Flight Services, located in New

Delhi, Mumbai, Cochin and Chennai, provide in-flight meals of international quality to

reputed airlines.

Mr. Oberoi realised that the hotel and hospitality business is greatly dependent on travel

agents, a vital element in the distribution chain. Therefore, he decided to establish his

own travel agency. Mercury Travels, part of The Oberoi Group, ranks amongst the

leading travel agencies in India.

With vision and imagination, Mr. Oberoi converted old and dilapidated palaces,

historical monuments and buildings into magnificent hotels such as The Oberoi Grand in

Calcutta, the historic Mena House Oberoi in Cairo and The Windsor in Australia. It was,

in fact, in the face of severe opposition that the State Government of Victoria awarded

Mr. Oberoi the lease of The Windsor, a heritage building in Melbourne. He personally

supervised the restoration of the hotel to its original grandeur and later acquired it. The

Oberoi Cecil in Shimla, built in the early 20th century, reopened in April 1997 after

extensive and meticulous renovation.

Awards and Honors

In 1943, Mr. Oberoi was conferred the title of Rai Bahadur by the British Government in

recognition of his services to the Crown. Thereafter, Mr. Oberoi won acclaim and

received several national and international awards including admission to the Hall of

Fame by the American Society of Travel Agents (ASTA) and Man of The World award

by the International Hotel Association (IHA), New York. He was presented the Order of

The Republic, First Class by the President of Egypt. He got an Honorary Doctorate of

Business Administration from the International Management Centre, Buckingham, UK.

Newsweek named him one of the Elite Winners of 1978. The PHDCCI Millennium

award in 2000 was presented in recognition of his entrepreneurial and business

success. In 2001, the Government of India accorded him the Padma Bhushan.

Globalization of The Oberoi Group

To place The Oberoi Group on the world map, Mr. Oberoi exported management

expertise to Australia, Egypt and Singapore, where The Oberoi Group took charge of

the management of existing luxury hotels. The success of Oberoi Hotels & Resorts

overseas, in the face of global competition, greatly enhanced the image of The Group.

Today, Oberoi Hotels & Resorts in Indonesia, Egypt, Mauritius, Saudi Arabia and India

add value and distinction to their host countries.

Foundations of the Future

Under Mr. Oberoi’s dynamic leadership, The Oberoi Group introduced its second brand

of hotels, ‘Trident’. Trident hotels are five-star hotels that have established a reputation

for excellence and are acknowledged for offering quality and value. These hotels

combine state of the art facilities with dependable service in a caring environment,

making them the ideal choice for business and leisure travellers. Presently there are

nine Trident hotels in India located in Mumbai at Bandra Kurla and Nariman Point,

Gurgaon (Delhi National Capital Region), Chennai, Bhubaneshwar, Cochin, Agra,

Jaipur and Udaipur. The Oberoi Group also operates a Trident hotel in the Saudi

Arabian city of Jeddah.

In the luxury category, The Group opened The Oberoi Rajvilas, Jaipur; The Oberoi

Cecil, Shimla; The Oberoi Udaivilas, Udaipur; The Oberoi Vanyavilas, Ranthambhore;

The Oberoi Amarvilas, Agra; Wildflower Hall, Shimla in the Himalayas; The Oberoi,

Lombok, Indonesia; The Oberoi, Sahl Hasheesh, Egypt; The Oberoi, Mauritius and The

Oberoi Zahra, Luxury Nile Cruiser, Egypt.

The Group employs more than 12,000 people worldwide and operates 28 hotels and

three cruisers in five countries.

Mr. Oberoi’s achievements and successes did not, however, take from his simplicity and

old-fashioned charm. He retained, until his death in May 2002 at the age of 103, a

unique humility. He was fond of saying, “I have been able to accept the challenge and

make good. There is comfort in knowing that whatever little I have achieved has also

helped to raise the prestige of my country.”

Mr. P.R.S. Oberoi

Chairman and CEO, EIH Limited

o Mr. P.R.S. Oberoi is the Chairman and Chief Executive Officer of EIH Limited,

the flagship company of The Oberoi Group. He is also the Chairman of Oberoi Hotels

Private Limited, the major shareholder of EIH Limited. Popularly known as "Biki", Mr.

Oberoi is the son of late Rai Bahadur M.S. Oberoi, the founder of The Oberoi Group.

o Mr. P.R.S. Oberoi was educated in India, the United Kingdom and in Switzerland.

o In addition to providing leadership for the management of luxury hotels in several

countries, Mr. Oberoi has been instrumental in pioneering the development of the new

Oberoi hotels and resorts. The "Oberoi" brand has come to represent fine luxury hotels.

o Mr. Oberoi is credited with placing Oberoi hotels on the international luxury

travelers’ map with the opening of several new luxury hotels in important locations, thus

redefining architectural and design standards in luxury hospitality. A key aspect of this is

the development of hotels that reflect their environment.

o It is Mr. Oberoi’s firm belief that people are the most valuable asset of any

organization. Recognizing the importance of quality in hospitality management, Mr.

Oberoi established ‘The Oberoi Centre of Learning and Development’ at New Delhi in

1966. Today, this institution is considered amongst the best in Asia.

o As a member of the World Wide Fund for Nature, Mr. Oberoi is committed to the

conservation of the environment.

o Above all, Mr. Oberoi is aware of the need to constantly promote quality in every

segment of the hospitality industry. Under his leadership, Oberoi Hotels and Resorts

have received numerous international awards.

o In 2001, His Majesty King Mohammed VI of Morocco personally awarded Mr.

Oberoi the Grand Officer of the Alalaoui Wissam, which is one of the highest awards in

Morocco. The award was conferred in recognition of Mr. Oberoi’s contribution to tourism

and to Indo-Moroccan relations.

o In recognition of his exceptional leadership and vision, the 6th International

Hotels Investment Forum in Berlin honored Mr. Oberoi with the prestigious Lifetime

Achievement Award in March 2003.

o In January 2004, Mr. Oberoi was conferred a Special Award by the Department

of Tourism, Government of India, in recognition of his contribution to the tourism sector.

The letter from the Department stated, "Due to your entrepreneurial skills and visionary

leadership, The Oberoi Group has risen to a global brand, renowned for its high

standards of service and excellence".

o In October 2005, the Hotel Investment Conference Asia Pacific (HICAP), which is

the preeminent gathering of hotel investors, investment bankers and leading industry

professionals in the region, honoured Mr. Oberoi with the Lifetime Achievement Award

at its annual Conference in Hong Kong. This award was given in recognition of Mr.

Oberoi’s contribution to the hospitality industry and his pioneering leadership in making

The Oberoi Group a global brand by taking the concept of luxury to a new paradigm.

o Mr. Oberoi was also conferred the Lifetime Achievement Award at the CNBC TV

18 India Business Leader Awards 2007 for building a world-class hotel chain that caters

to both luxury and business travelers and for shaping the hospitality industry of the

country.

o India Business Leader Awards, the Indian Edition of Asia Business Leader

Awards, define and celebrate vision, the spirit of achievement and excellence in

business leadership.

o In January 2008, Mr. Oberoi was awarded the Padma Vibhushan, India’s second

highest civilian honor, in recognition of his exceptional service to the country.

o Mr. Oberoi received the Lifetime Achievement Award at the South Asia Travel &

Tourism Exchange (SATTE) and the 4th Hotel Investment Conference – South Asia

(HICSA) in April 2008. In August 2008, Mr. Oberoi was presented with the Lifetime

Achievement Award at the Business world-NID (National School of Design) Design

Brilliance Awards. These awards honor new levels of excellence in design.

o Mr. Oberoi received the Outstanding Business Leader Award from the

Associated Chambers of Commerce and Industry (ASSOCHAM) and Society of Indian

Law Firms in September 2008. This award was presented in recognition of Mr. Oberoi’s

leadership in establishing high standards of excellence which has won The Oberoi

Group international acclaim.

o In November 2008, Mr. Oberoi was conferred the Lifetime Achievement Award at

the Ernst & Young Entrepreneur of the Year Awards for redefining design standards in

luxury hotels.

o Business India magazine adjudged Mr. Oberoi the Businessman of the Year

2008. Mr. Oberoi received this award for building a world-class premium hospitality

brand.

o Mr. Oberoi was honored with the first Hall of Fame Award at the Hotel Investment

Forum India (HIFI) in February 2009. The HIFI Hall of Fame Award is presented to an

individual who exemplifies outstanding business practices, leadership and achievement,

both professionally and personally.

o In September 2009, Mr. Oberoi received the Lifetime Achievement Award at the

first Economic Times TAAI Travel Awards 2009. These awards were organized by The

Economic Times in association with the Travel Agents Association of India (TAAI).

o Mr. Oberoi was presented with the '2010 Corporate Hotelier of the World' award

by HOTELS magazine in November 2010. This annual award is determined by votes

cast by readers of the magazine in more than 150 countries. The cover story of the

November edition of the magazine referred to Mr. Oberoi as ‘the founder father of

modern luxury hospitality in India’ and credited him with growing the company ‘into one

of the world’s most prestigious luxury hotel groups’.

Awards

Award Awarded By

Top 15 Resorts in Asia

(Ranked 1st)

Travel + Leisure, World's Best Awards,

Readers' Survey 2011

Top 100 Hotels in the World

(Ranked 5th)



Best Leisure Hotels in Asia and the Indian

Subcontinent

(Ranked 1st)

Condé Nast Traveller, UK, Readers’

Travel Awards 2010


(Ranked 4th)




(Ranked 15th)



Top Hotels in Asia for Service

(Ranked 3rd)

Travel + Leisure, World’s Best Service

Awards, Readers’ Survey 2010

Top Hotels in the World for Service

(Ranked 9th)



Top 100 Hotels in Asia

(Ranked 5th)

Condé Nast Traveler, USA, Readers’

Choice Awards 2010


(Ranked 20th)


Choice Awards 2010


(Ranked 1st)


Choice Awards 2009


(Ranked 6th)


Choice Awards 2009


(Ranked 3rd)




(Ranked 8th)


Readers ‘Survey 2009

Favorite Overseas Hotel Spa: Asia & the

Indian Subcontinent

(Ranked 9th)

Condé Nast Traveller, UK, Readers' Spa

Awards 2010

Amongst the ‘World's Most Exclusive

Hotels’

Forbes.com, World's Most Exclusive

Hotels 2009

Best Hotels and Resorts in the World Forbes Traveler 400, The World’s Best

Hotels and Resorts 2009

Winner of the Sustainable Destinations

Award

Hotel Investment Conference Asia Pacific

(HICAP) 2009 Sustainable Hotel Awards

Amongst nominees for the 'Hotel of the

Year' award

Virtuoso, Best of the Best Awards 2008


(Ranked 1st)


Choice Awards 2008


(Ranked 4th)


Choice Awards 2008


(Ranked 2nd)

Travel + Leisure, World’s Best Awards,

Readers’ Survey 2008


(Ranked 4th)




(Ranked 5th)



Top International not Urban Hotel

(Ranked 1st)

Condé Nast Traveler, Spain, Readers’

Choice Awards 2008



Amongst best hotels in Asia The Ultra travel Top 100 Awards,

Readers’ Poll 2009

Best Hotel Spas in Asia and the Indian

Subcontinent

(Ranked 1st in India)

Condé Nast Traveller, UK, Readers' Spa

Awards 2008

Top 10 Luxury Hotels in India

(Ranked 5th)

Trip Advisor, Travelers’ Choice Awards

2009


(Ranked 1st)



Top Hotels in Asia

(Ranked 1st)




(Ranked 2nd)


Choice Awards 2007

Top Hotels in Asia

(Ranked 1st )


Choice Awards 2007

Best Hotels in the World for Rooms:

Amongst those with score of 100

Condé Nast Traveler, USA, Gold List 2008

Best Hotels in the World for Service:



Best Hotels in the World for Location:



Best Hotels in the World for Design:



Best Hotels in the World for Food:

Amongst those with a high score


Top Hotels in the World for Service

(Ranked 7th)





Asia’s Leading Suite:

The Kohinoor Suite

World Travel Awards 2007

Top Small Hotels in the World:

Amongst hotels with the 2nd highest score

Zagat Survey, World’s Top Hotels,

Resorts and Spas 2007-2008

Top Service in the World:

Amongst hotels with the highest score



Top Rooms in the World:




Top Facilities in the World




10 Leading Small Hotels, Resorts & Inns

in the World

(Ranked 6th)



Grand Award Winner: Andrew Harper’s Hideaways Report 2007

World’s most captivating hideaways

Best Hotels in the World for Service:

Amongst those with a score of 100


Best Hotels in the World for Rooms:



Best Hotels in the World for Design:


Condé Nast Traveler, USA, Gold List

2007

The World’s Best Hotels Travel + Leisure, T+L 500, 2007


(Ranked 3rd)



Best Hotels in the World for Service

(Ranked 1st)

Condé Nast Traveller, UK, The Gold List

2006


(Ranked 3rd)




(Ranked 5th)


Choice Award 2006

Top 25 Spas in the World

(Ranked 14th)

Condé Nast Traveller, UK, Readers’ Spa

Awards 2006

Best Hotels and Resorts in the World Forbes Traveler 400, The Best Hotels and

Resorts in the World 2006

Asia’s Leading Resort World Travel Awards 2006

101 Best Hotels in the World Tatler Travel Guide 2006

Top Resorts in Asia

(Ranked 6th)


Choice Awards 2005

Best New Hotels / Resorts Discovery Gallivanter’s Guide, Award for Excellence

(Ranked 3rd) 2005

Hotel of the Year 2003 Gallivanter’s Guide, Editor’s Choice Award

2004

The Best Destinations of 2003 Forbes magazine 2004

Best Suites Award Elite Traveler Award 2004

Top 50 Coolest New Hotels in the World Condé Nast Traveler, USA, Hot List 2003

Winner of Spa Sanctuaries Category Harper’s Abroad Travel Supplement 2003

Best New Hotels in the World Condé Nast Traveller, UK, The Hot List

2003

101 Best Hotels: New Sensations Tatler Travel Guide 2003

‘One in a Million’ Rating Gallivanter’s Guide 2002

100 Fabulous Places for 2001

(Ranked 12th)

Travel + Leisure 2001

Executive Summary

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 don’t have good opportunities in hand. As

soon as they feel dissatisfied with the current employer or the job, they switch over to the

next job. It is the responsibility of the employer to retain their best employees. If they don’t,

they would be left with no good employees. A good employer should know how to attract

and retain its employees.

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. Employees comprise the most vital assets of the company.

In a work place where employees are not able to use their full potential and not heard and

valued, they are likely to leave because of stress and frustration. In a transparent

environment while employees get a sense of achievement and belongingness from a

healthy work environment, the company is benefited with a stronger, reliable work-force

harboring bright new ideas for its growth

Introduction

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 turnover costs? Well, the answer is a definite no. It’s not only the cost

incurred by a company that emphasizes the need of retaining employees but also the need

to retain talented employees from getting poached.

Retention involves five major things:

Ø Compensation

Ø Environment

Ø Growth

Ø Relationship

Ø 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. Compensation includes salary and

wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While

setting up the packages, the following components should be kept in mind.

Salary and monthly wage:

It is the biggest component of the compensation package. It is also the most common

factor of comparison among employees. It includes:

Basic wage

House rent allowance

Dearness allowance

City compensatory allowance

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 employee’s 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 startup 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. After retirement: It includes payments that an Employee gets

after he retires like EPF (Employee Provident Fund) etc. Miscellaneous compensation:

It may include employee assistance programs (like psychological counseling, legal

assistance etc), discounts on company products, use of a company cars, etc.

Employers are Key Drives To Attract And Retain Talent:

Some Examples can be:

Procter and Gamble India:

Early responsibilities in career

Flexible and transparent organizational culture

Global opportunities through a variety of exposure and diverse experiences

Performance Recognition

American Express (India):

Strong global brand

Value-based environment

Pioneer in many people practices

NTPC:

Learning and growth opportunities

Competitive rewards

Opportunity to grow, learn and implement

Strong social security and employee welfare

Performance- oriented culture

Johnson & Johnson:

Strong values of trust, caring fairness, and respect within the organization

Freedom to operate at work

Early responsibility in career

Training and learning opportunities

Visible, transparent and accessible leaders

Competitive rewards

Innovative HR programs and practices

Glaxo Smith Kline Consumer Healthcare:

Performance-driven Rewards

Its belief in “Growing our own timber”

Comprehensive development and learning programs

Flat organization, where performance could lead to very quick progression

Challenging work context

Competitive rewards

Exhaustive induction and orientation program

Tata Steel:

Organization philosophy and culture

Job stability

Freedom to work and innovate

Colgate Palmolive India:

Company brand

Open , transparent, and caring organization

Management according to the managing with respect to guiding principles

Training and development programs

Structured career planning process

Global career opportunities

Wipro:

Company’s brand as an employer

Early opportunities for growth

High degree of autonomy

Value compatibility

Innovative people program

Indian Oil Corporation:

Company brand image

Work ethics

Learning and growth opportunities

Challenging work assignments

Growing organization

TCS:

o The group brand equity

o Strong corporate governance and citizenship

Commitment to learning and development

o Best in people practices

o Challenging assignments

o 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:

Ø Appreciation for the work done

Ø Ample opportunities to grow

Ø A friendly and cooperative environment

Ø A feeling that the organization is second home to the employee

Organization environment includes:

o Culture

o Values

o Company reputation

o Quality of people in the organization

o Employee development and career growth

o Risk taking

o Leading technologies

o Trust

Types of environment the employee needs in an organization:

Learning environment:

o It includes continuous learning and improvement of the individual, certifications and

provision for higher studies, etc.

Support environment:

o Organization can provide support in the form of work-life balance. Work life balance

includes:

o Flexible hours

o Telecommuting

o Dependent care

o Alternate work schedules

o Vacations

o Wellness

Work environment:

o It includes efficient managers, supportive co-workers, challenging work, involvement in

decision-making, clarity of work and responsibilities, and recognition. Lack or absence

of such environment pushes employees to look for new opportunities. The environment

should be such that the employee feels connected to the organization in every respect.

Growth and Career:

o Growth and development are the integral part of every individual’s career. If an

employee can not foresee his path of career development in his current organization,

there are chances that he’ll leave the organization as soon as he gets an opportunity.

The important factors in employee growth that an employee looks for himself are:

Work profile:

o The work profile on which the employee is working should be in sync with his

capabilities. The profile should not be too low or too high.

Personal growth and dreams:

o Employee’s responsibilities in the organization should help him achieve his personal

goals also. Organizations cannot keep aside the individual goals of employees and

foster organizations goals. Employees’ priority is to work for them and later on comes

the organization. If he’s not satisfied with his growth, he’ll not be able to contribute in

organization growth.

Training and development:

Employees should be trained and given chance to improve and enhance their skills.

Many employers fear that if the employees are well rained, they’ll leave the organization

for better jobs. Organization should not limit the resources on which organization’s

success depends. These trainings can be given to improve many skills like:

Communications skills

o Technical skills

o In-house processes and procedures improvement related skills

o C or customer satisfaction related skills

o Special project related skills

Need for such training can be 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 employee’s interest and he becomes de-motivated. It leads to less

satisfaction and eventually attrition.

A supportive work culture helps grow employee professionally and boosts employee

satisfaction. To enhance good professional relationships at work, the management

should keep the following points in mind.

Respect for the individual:

Respect for the individual is must in the organization. Relationship with the immediate

manager: A manger plays the role of a mentor and a coach. He designs and plans work

for each employee. It is his duty to involve the employee in the processes of the

organization. So an organization should hire managers who can make and maintain

good relations with their subordinates. Relationship with colleagues: Promote team

work, not only among teams but in different departments as well. This will induce

competition as well as improve the

Relationship among colleagues.

Recruit whole heartedly:

An employee should be recruited if there is a proper place and duties for him to perform.

Otherwise he’ll feel useless and will be dissatisfied. Employees should know what the

organization expects from them and what their expectation from the organization is.

Deliver what is promised. Promote an employee based culture: The employee should

know that the organization is there to support him at the time of need. Show them that

the organization cares and he’ll show the same for the organization. An employee

based culture may include decision making authority, availability of resources, open

door policy, etc.

Individual development:

Taking proper care of employees includes acknowledgement to the employee’s dreams

and personal goals. Create opportunities for their career growth by providing mentorship

programs, certifications, educational courses, etc. Induce loyalty: Organizations should

be loyal as well as they should promote loyalty in the employees too. Try to make the

current employees stay instead of recruiting new ones.

Support

Lack of support from management can sometimes serve as a reason for employee

retention. Supervisor should support his subordinates in a way so that each one of them

is a success. Management should try to focus on its employees and support them not

only in their difficult times at work but also through the times of personal crisis.

Management can support employees by providing them recognition and appreciation.

Employers can also provide valuable feedback to employees and make them feel

valued to the organization.

The feedback from supervisor helps the employee to feel more responsible, confident

and empowered. Top management can also support its employees in their personal

crisis by providing personal loans during emergencies, childcare services, employee

assistance

Programs, counseling services, etc

Employers can also support their employees by creating an environment of trust and

inculcating the organizational values into employees. Thus employers can support their

employees in a number of ways as follows:

Ø By providing feedback

Ø By giving recognition and rewards

Ø By counseling them

Ø By providing emotional support

RESEARCH METHODOLOGY

Research Design:

The research design indicates the type of research methodology under taken to collect

the information for the study.

The researcher used both descriptive and analytical type of research design for his

research study. The main objective of using descriptive research is to describe the state

of affairs as it exists at present. It mainly involves surveys and fact finding enquiries of

different kinds. The researcher used descriptive research to discover the characteristics

of customers. Descriptive research also includes demography characteristic of

consumer who use the product.

The researcher also used analytical research design to analyze the existing facts from

the data collected from the customer.

Area of study:

The area of study is confined to employees of THE OBEROI UDAI VILAS, Udaipur.

Research instrument:

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

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 scales used to evaluate questions are:

o Dichotomous scale (Yes or No)

o Likert 5 point scale (Highly satisfied, satisfied, Neither Satisfied nor dissatisfied,

Dissatisfied, Highly dissatisfied)

o Category scale (Multiple items)

o Ranking type (R1, R2, R3…)

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.

Pilot study

It is appropriate to conduct pilot survey to check the reliability of the questionnaire. So

pilot study was conducted on 5 respondents which is a 10% of the sample.

Sampling design

A Sample design is a definite plan for obtaining a sample from a given population. It is

the procedure used by the researcher in selecting items for the sample.

Sample size

Sample size=125 samples, variance and confidence methods are used for determining

sample size.

Sampling Technique:

The researcher adopted simple random sampling for the study.

DATA COLLECTION METHOD

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.

STATISTICAL TOOLS AND TECHNIQUES

PERCENTAGE ANALYSIS:

Percentage = (No. of respondents/ total no. of respondents)*100

WEIGHTED AVERAGE METHOD:

Formula:

Mean score = total score/no of respondents.

Where total score = no of respondents*weighted average

CHI – SQUARE TEST:

1. Null Hypothesis (Ho): There is no difference in attributes

2. Alternate Hypothesis (H1): There is a difference in attributes

3. Level of significance α = 0.05

4. Degrees of freedom = (r-1)(c-1)

5. Expected frequency:

E = R.T × C.T

G.T

6. Calculation of:

∑ = ∑ (O-E) ²

E

7. The tabulated value of at given level of significance with (r-1)(c-1) Degrees of

freedom

ONE RUN TEST

Null hypothesis (H0):

There is a no significant relationship between the variables

Alternate hypothesis (H1):

There is significant relationship between the variables

µr = 2 n1 n2 + 1

n1 + n2

2 n1 n2- n1- n1

σr = 2 n1n2

(n1+ n2)2 (n1+ n2-1 )

Lower limit = µr + (2.58) σ

Upper limit = µr + (2.58) σ

KENDALL’S COEFFICIENT OF CONCORDANCE:

Null hypothesis (H0): There is a difference in attributes

Alternate hypothesis (H1): There is no difference in attributes

∑ Rj = (Rj-Rj)2

S= Rj = ∑ Rj

LIMITATIONS OF THE STUDY

1. The findings of the study are subjected to bias and prejudice of the respondents.

2. Area of the study is confined to the employees in Chennai only.

3. Time factor can be considered as a main limitation.

4. The findings of the study are solely based on the information provided by the

respondents.

5. The accuracy of findings is limited by the accuracy of statistical tools used for

analysis.

6. Findings of the research may change due to area, demography, age condition of

economy etc.

Chi-Square Test

To find whether there exist a significant relationship between Work Culture of the

Company and interpersonal relationship between employees.

H0: There is a no significant relationship between Work Culture of the Company and

interpersonal relationship between employees.

H1: There is a significant relationship between Work Culture of the Company

and interpersonal relationship between employees.

Calculated value is more than table value therefore accepts H0

Result:

There is a significant relationship between overall satisfaction and aspects of job.

KENDALL’S COEFFICIENT OF CONCORDANCE

Null hypothesis (H0): There is a no significant difference in the rank assigned by

respondents towards the attributes that gives them satisfaction in the company.

Alternate hypothesis (H1): There is a significant difference in the rank assigned by

respondents towards the attributes that gives them satisfaction in the company.

Ranking Based on Satisfaction

K=20

Salary

Superior Role

Team Coordination

Work responsibilities

Rules and Policies

Physical work environment

Training

Calculated value : S= 5815.714

Table value : 1158

Calculated value is more than table value therefore reject H0

Result:

There is a significant difference in the rank assigned by respondents towards the

attributes that gives them satisfaction in the company.

ONE RUN TEST

Null hypothesis (H0):

The samples are not taken randomly.

Alternate hypothesis (H1):

The samples are taken randomly.

EMPLOYEE’S SATISFACTION REGARDING MONETARY BENEFITS PROVIDED BY

THE COMPANY.

Retention Management

Abstract:

Background:

Retention management is a highly topical subject and an important dilemma many

organizations might face in the future, if not facing it already. We believe that the leader

plays a key role in employee retention and retention management. The concept of

retention management can both have a narrow, and a broader significance. Both parts

of its significance are generally included in this thesis. The background of the thesis

present a few articles that discuss issues that makes it important for the organization,

and the leaders, to 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 leader’s 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’s 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 people’s 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 leader’s relation to the employees plays a central role in

retaining employees, because employees need to feel involvement, and that their

presence count. When retention is a core value, good things happen for customers,

employees, and the company.

Employee Retention Strategies

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 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:

1. Low

2. Medium

3. High level.

Low Level Employee Retention Strategies:

1) Appreciating and

2) recognizing a well done job

3) Personalized well done and thank-you cards from supervisors

4) Congratulations e-cards or cards sent to spouses/families

5) Voicemails or messages from top management

6) Periodic days off for good performance

7) Rewards ( gift, certificates, monetary and non monetary rewards)

8) Recognizing professional as well as personal significant events

9) Wedding gifts

10)Anniversary gifts.

11)New born baby gifts

12)Scholarships for employee’s children

13)Get well cards/flowers

14)Birthday cards, celebrations and gifts

15)Providing benefits

16)Home insurance plans

17)Legal insurance

18)Travel insurance

19)Disability programs

20)Providing perks: It includes coupons, discounts, rebates, etc

21)Discounts in cinema halls, museums, restaurants, etc.

22)Retail store discounts

23)Computer peripherals purchase discounts

24)Providing workplace conveniences

25)On-site ATM

26)On-site facilities for which cost is paid by employees

27)Laundry facility for bachelors

28)Shipping services

29)Assistance with tax calculations and submission of forms

30)Financial planning assistance

31)Casual dress policies

32)Facilities for expectant mothers

33)Parking

34)Parenting guide

35)Lactation rooms

36)Flexi timings

37)Fun at work

38)Celebrate birthdays, anniversaries, retirements, promotions, etc

39)Holiday parties and holiday gift certificates

40)Occasional parties like diwali, holi, dushera, etc

41)Organize get together for watching football, hockey, cricket matches

42)Organize picnics and trips for movies etc

43)Sports outings like cricket match etc

44)Indoor games

45)Occasional stress relievers

46)“Casual dress” day

47)“Green is the color” day

48)Handwriting analysis

49)Tattoo, mehandi, hair braiding stalls on weekends

50)Mini cricket in office

51)Ice cream Fridays

52)Holiday breakfast

53)Employee support in tough time or personal crisis

54)Personal loans for emergencies

55)Childcare and eldercare services

56)Employee Assistance Programs (Counseling sessions etc)

57)Emergency childcare services

Medium Level Strategies for Employee Retention

Appreciating and recognizing a well done job

Special bonus for successfully completing firm-sponsored certifications

Benefit programs for family support

Child adoption benefits

Flexible benefits

Dependents care assistance

Medical care reimbursement

Providing conveniences at workplace

Gymnasiums

Athletic membership program

Providing training and development and personal growth opportunities

Sabbatical programs

Professional skills development

Individualized career guidance

High Level Strategies

Promoting Work/Life

Effectiveness

Develop flexible schedules

Part-time schedules

Extended leaves of absence

Develop Support Services

On-site day care facility etc.

Understand employee needs: This can be done through proper management style and

culture

Listen to the employee and show interest in ideas

Appreciate new ideas and reward risk-taking

Show support for individual initiative

Encourage creativity

Encouraging professional training and development and/or personal growth

opportunities: It can be done through:

o Mentoring programs

o Performance feedback programs

o Provide necessary tools to the employees to achieve their professional and personal

goals

o Getting the most out of employee interests and talents

o Higher study opportunities for employees

o Vocational counseling

o Offer personalized career guidance to employee

Provide an environment of trust: Communication is the most important and effective way

to develop trust.

Suggestion committees can be created

Open door communication policy can be followed

Regular feedbacks on organization’s goals and activities should be taken from the

employees by:

o Management communications

o Intranet and internet can be used as they provide 24X7 access to the information

Newsletters, notice boards, etc.

Hire the right people from the beginning:

Employee retention is not a process that begins at the end. The process of retention

begins right from the start of the recruitment process.

The new joinees should fit with the organization’s culture. The personality, leadership

characteristics of the candidate should be in sync with the culture of the hiring

organization.

Referral bonus should be given to the employees for successful hires. They are the best

source of networking. 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

Transparent Work Culture:

In today’s fast paced business environments where employees are constantly striving to

achieve business goals under time restrictions; open minded and transparent work

culture plays a vital role in employee retention. Companies invest very many hours and

monies in training and educating employees. These companies are severely affected

when employees check out, especially in the middle of some big company project or

venture. Although employees most often 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. More importantly, transparency in work environment

discourages work-politics which often hinders company goals as employees start to

advance their personal objectives at the expense of development of The Company as a

single entity.

.

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 individual’s 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:

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 them. Employers can also support their employees by creating an

environment of trust and inculcating the organizational values into employees.

The management can support employees directly or indirectly. Directly, they provide

support in terms of personal crises, managing stress and personal development.

Management can support employees, indirectly, in a number of ways as follows:

Manage employee turnover:

Employee turnover affects the whole organization in terms of productivity. Managing the

turnover, hence, becomes an important task. A proactive approach can be adopted to

reduce attrition. Strategies should be framed in advance and implemented when the

times arrives. Turnover costs should also be taken into consideration while framing

these strategies.

Become employer of choice:

What makes a company an employer of choice? Is the benefit it offers or the

compensation packages it gives away to its employees? Or is it measured in terms of

how they value their employees or in terms of customer satisfaction? Becoming an

employer of choice involves following a road map which tells where to go as a brand.

Engage the new recruits:

The newly hired employees are said to be least engaged in the organization. Keeping

them engaged is an important task. The fresh talent should be utilized to maximum

before they start feeling bored in the organization.

Optimize employee engagement:

An organization’s productivity is measured not in terms of employee satisfaction but by

employee engagement. Employees are said to be engaged when they show a positive

attitude toward the organization and express a commitment to remain with the

organization. Employee satisfaction also comes with high engagement levels. So,

organizations should aim to maximize the engagement among employees.

Coaching and mentoring:

Employees whose work performance suffers due to poor interpersonal relationships or

because of lack of interpersonal skills should be provided proper coaching by their

superiors. Planed coaching sessions help an individual to work through issues,

maximize his potential and return to peak performance.

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 performance boosts up morale of employees and results in performance

improvement to a higher productivity level. It is believed that positive feedback is the

only type of feedback that generates performance above the minimum acceptable level.

Negative feedback obviously communicates manager’s dissatisfaction. However,

negative feedback sometimes make employee to put more efforts to improve his

performance. But such times are very rare. Moreover this improvement is short term.

Some managers do not provide any kind of feedback to their employees. Due to no

feedback, employees may assume that they are performing productively or they may

feel that the manager is satisfied with their performance. Studies reveal the

performance tends be same or even decreases if no feedback is provided. Thus,

feedback is necessary because:

It builds trust and enhances communication between manager and

employee.

It gives managers and employees a way to identify and discuss skills and strengths.

Positive feedback leads to employee retention and Retention.

It helps in identifying performance areas that need improvement and specific ways to

improve them. It acts as an opportunity to enhance performance by identifying

resources for skill development. It is an opportunity for managers and employees to

assess and identify career and advancement opportunities. It helps employees to

understand the effectiveness of their performance and contributes to their overall

knowledge about the work Managers have tendency to ignore good performances of

their employees. Providing no feedback may demotivate employees and may lead to

employee absenteeism. Input from manager’s side is necessary as it help employees to

improve their performance and increase productivity.

Communication between Employee and Employer:

Communication is a process in which a message is conveyed to the receiver by the

sender. The message may be or may not be in a common format or language that both

the sender and receiver understand. So there is a need to encode and decode the

message in the process. Encoding and decoding also helps in the security of the

message. The process of communication is incomplete without the feedback.

Communication is the solution to almost everything in this world. Same applies to

employee retention also.

Straight-from-the-shoulder communication is what the employees need from their

employers. Employees look for organizations where communication and process are

transparent. Nothing is hidden and shared with the employees.

There are 3 categories of employees:

A: Who will leave their current employer in 3 years of their employment

B: Who have a probability of leaving their current employer in next 3 years

C: Who will stay with their current employer in the next 3 years

Category A: These are the employees who lack communication with their employers.

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.

Importance Of Employee Retention:

The process of employee retention will benefit an organization in the following ways:

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.

o 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.

o 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 employee

What Makes Employee Leave?

Employees do not leave an organization without any significant reason. There are

certain circumstances that lead to their leaving the organization. The most common

reasons can be:

Job is not what the employee expected to be:

Sometimes the job responsibilities don’t come out to be same as expected by the

candidates. Unexpected job responsibilities lead to job dissatisfaction.

Job and person mismatch: A candidate may be fit to do a certain type of job which

matches his personality. If he is given a job

which mismatches his personality, then he won’t be able to perform it well and will try to

find out reasons to leave the job.

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

will make candidate’s 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.

Managing Employee Retention

The task of managing employees can be understood as a three stage process:

1. Identify cost of employee turnover.

2. Understand why employee leave.

3. Implement retention strategies

The organizations should start with identifying the employee turnover rates within a

particular time period and benchmark it with the competitor organizations. This will help

in assessing the whether the employee retention rates are healthy in the company.

Secondly, the cost of employee turnover can be calculated. According to a survey, on

an average, attrition costs companies 18 months’ salary for each manager or

professional who leaves, and 6 months’ pay for each hourly employee who leaves. This

amounts to major organizational and financial stress, considering that one out of every

three employees plans to leave his or her job in the next two years.

Understand why employees leave:

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.

Implement retention strategy:

Once the causes of attrition are found, a strategy is to be implemented so as to reduce

employee turnover. The most effective strategy is to adopt a holistic approach to dealing

with attrition. An effective retention strategy will seek to ensure:

Attraction and recruitment strategies enable selection of the ‘right’ candidate for each

role/organization

New employees’ initial experiences of the organization are positive

Appropriate development opportunities are available to employees, and that they are

kept aware of their likely career path with the organization

The organization’s reward strategy reflects the employee drivers

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? Basic salary, these days, hardly

reduces turnover. Today, employees look beyond the money factor.

Retention Bonus

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. In some companies, bonuses range from 25

percent to 50 percent of annual salary, depending on position, tenure and other factors.

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. Companies of

all sizes use retention bonus plans to keep knowledge employees retained in the

company. To retain its key senior employees post merger with EDS Corporation,

Emphasis is providing cash component based retention bonus plan for its employees.

This is mainly to retain good employees and provide them a cash incentive to keep

them motivated.

Hire Right Talent

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. Don’t 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. Don’t

show them an unrealistic picture.

Culture fit:

Try to judge individual’s capability to adapt to the organization’s 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.

Manager Role in Retention

When asked about why employees leave, low salary comes out to be a common

excuse. However, research has shown that people join companies, but leave because

of what their managers’ do or don’t do. It is seen that managers who respect and value

employees’ competency, pay attention to their aspirations, assure challenging work,

value the quality of work life and provided chances for learning have loyal and engaged

employees. Therefore, managers and team leaders play an active and vital role in

employee retention.

Managers and team leaders can reduce the attrition levels considerably by creating a

motivating team culture and improving the relationships with team members. This can

be done in a following way:

Creating a Motivating Environment:

Team leaders who create motivating environments are likely to keep their team

members together for a longer period of time. Retention 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.

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 don’t 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.

How to Improve Employee Retention

People want to enjoy their work so make work fun and enjoyable.

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 employee’s 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 behaviors. 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

Recognition should be part of the organization's culture because it contributes to both

employee satisfaction and retention. Organizations can avoid employee turnover by

rewarding top performers. Rewards are one of the keys to avoiding turnover, especially

if they are immediate, appropriate, and personal. A Harvard University study concluded

that organizations can avoid the disruption caused by employee turnover by avoiding

hiring mistakes and selecting and retaining top performers.

One of the keys to avoiding turnover is to make rewards count. Rewards are to be

immediate, appropriate, and personal. Organizations may want to evaluate whether

getting a bonus at the end of the year is more or less rewarding than getting smaller,

more frequent payouts. Additionally, a personal note may mean more than a generic

company award. Employees should be asked for input on their most desirable form of

recognition. Use what employees say when it comes time to reward for performance

(St. Amour, 2000).

Designing a Rewards and Recognition Solution

In designing rewards and recognition program, the following guidelines should be

considered.

Rewards should be visible to all members of the organization.

Rewards should be based on well-defined, credible standards that have been

developed using observable achievements.

Rewards should have meaning and value for the recipient.

Rewards can be based on an event (achieving a designated goal) or based on a time

frame (performing well over a specific time period).

Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly

motivating and should also use a set criteria and standard to maintain credibility and

meaning.

Rewards should be achievable and not out of reach by employees.

Nonmonetary rewards, if used, should be valued by the individual. For example, an avid

camper might be given a 10-day pass to a campsite, or, if an individual enjoys physical

activity, that employee might be given a 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, use 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

Appreciation letter from the CEO and senior management

E-mails, phone calls, and notes from peers

In addition to nonmonetary rewards, employees can be rewarded using money in

numerous ways. Cash is a welcome motivator and reward for improving performance,

whether at formal meetings or on the spot. Variable bonuses linked to performance are

another popular reward strategy. Profit sharing and pay-for-skills are monetary bonus

plans that both motivate individuals and improve goal achievement. Small acts of

recognition are valuable for employee daily Retention. Sometimes a personal note may

mean more than a generic company award. In one survey, employees cited the

following as meaningful rewards (Moss, 2000):

Employee of the month awards Years of service awards

Bonus pay (above and beyond overtime) for weekend work

Invitations for technicians to technical shows and other industry events

Meaningful and Rotational Rewards

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.

Case Studies

Employee Retention Best Practices in Keeping and Motivating Employees

By LisBeth Claus

Ask any CEO of an organization, “What keeps you awake at night?” and you will get a

response that relates to people management issues. a main concern for any

organization (whether small or large; private, public or nonprofit) is its capacity to attract,

engage,

and retain the right people. The problem of retention is compounded by the predicted

talent shortage resulting from the upcoming retirement of the baby boomers, the

scarcity of talent with relevant work skills for today’s jobs, the changing values about

work and the high cost of turnover. Research and human resource practices provide us

with a number of recommendations to increase employee retention.

How Auditing Company X Works with Retaining Valuable Employees : Swedish Case

study

University essay from Högskolani Jonkoping/IHH, EMM (Entrepreneurship,

Management)

Author: Josip Bogic; Elina Armanto; Maja Cassel; [2008]

Abstract: Today, neither employees nor employers seem to take for granted that a

person will stay with the same firm until retirement. Yet, keeping employees for longer

periods is an important challenge for firms. One industry where retention is interesting is

the auditing industry in Sweden, this because certain requirements are needed to

become an auditor. Firstly, the employee needs to have a Swedish university degree,

including specific courses within auditing/accounting. Furthermore, the person needs

practical experience for a specific period of time. Due to these statements the challenge

of retaining and motivating valuable employees is crucial for the auditing firms, which is

why we have chosen to do a case study at Auditing Company X to see how they work

with employee retention. We have compared the findings to our chosen theory, which

consist of four categories: the hiring process, internal labor market and career,

motivation and performance, and finally culture and leader-ship. These four categories

are initially based on Leigh Branham book keeping the people who keep you in

business: 24 ways to hang on to your most valuable talent? (Bran-ham, 2001).In our

conducted case study, at Auditing Company X, we have been able to conclude that the

firm’s retention practices are to a great extend in line with the theoretical framework.

There are some areas that need further attention from the company, such as an

individualized reward system and communication between managers and employees.

Even though there are some parts to work on the most important aspects of retention,

such as having a holistic and long-term orientation, Auditing Company X seems to have

incorporated this into their practices successfully.

Retention: An explanatory study of Swedish employees in the financial sector regarding

leadership style, remuneration and elements towards job satisfaction

University essay from Viejo universities/Ekonomihögskolan

Author: Samna Paulson; Linda Lindgren; [2008]

Abstract: 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 and work-atmosphere is important for job

satisfaction and retention. Object: The main objective is to increase the understanding

regarding employee’s retention in relation to leadership style, remuneration and

elements such as participation, feedback, autonomy, fairness, responsibility,

development and work-atmosphere in the Swedish financial

Sector. Method: We wanted to investigate how employee of the Swedish financial

sector prefers to be retained, and how they consider and react to the chosen areas. The

survey has a quantitative approach with a web based questionnaire and includes 129

respondents from banks, insurance and finance companies. The theoretical framework

includes leadership and leadership style, financial as well as non-financial remuneration

and research done in later years regarding participation, feedback, autonomy, fairness,

responsibility, development and work-atmosphere connected to retention.

Conclusion: The result shows that regarding leadership the respondents prefer

leadership based on relations were they feel appreciation. Both appreciations from the

closest manager as well as the company management influences employee job

satisfaction in a positive way. More money was the most common reason for wanting to

change jobs, and when asking how the remuneration system should be designed, base

pay with additional bonus and benefits were preferred. But also non financial factors

such as participation, feedback, autonomy, fairness, responsibility, development and

work-atmosphere must be taken in consideration to satisfy since they seem to increase

employees Willingness to stay in the company.

What leaders can do to keep their key employees - Retention Management

University essay from Goteborg university/Företagsekonomiska institutional

Author: Lisa Edberg; Maria Helios; [2007-09-03T08:22:31Z]

Abstract: Background: retention management is a highly topical subject and an

important dilemma many organizations might face in the future, if not facing it already.

We believe that the leader plays a key role in employee retention and retention

management. The concept of retention management can both have a narrow, and a

broader significance. Both parts of its significance are generally included in this thesis.

The background of the thesis present a few articles that discuss issues that makes it

important for the organization, and the leaders, to 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 leader’s

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 Tradekas 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 people’s 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

leader’s relation to the employees plays a central role in retaining employees, because

employees need to feel involvement, and that their presence count. When retention is a

core value, good things happen for customers, employees, and the company.

FINDINGS

· It is found out that, 40% of respondents are aware of HR Policies and 60 % of

respondents are not aware of HR Policies.

· It is found out that, 76% of respondents are getting right amount of accurate

information at right time and 24% of respondents are not getting right amount of

accurate information at right time.

· It is found out that, 82% of respondents are able to meet superior’s expectation and

18% respondents are not able to meet superior’s expectation.

· It is found out that,57% of respondents feels that there pay is on par with compare to

employee’s handling similar responsibilities, and 39% of respondents feels that there

pay is less with compare to employee’s handling similar responsibilities.

· It is found out that, 70% of respondents are satisfied with hygiene and cleanliness of

company infrastructure and 30% of respondents are not satisfied with hygiene and

cleanliness of company infrastructure.

· It is found out that, 40% of respondents are satisfied with Availability of system,

storage facilities of company and 60% of respondents are not satisfied with Availability

of system, storage facilities of company.

· It is found out that, 78% of respondents skills are recognized by superiors and 22% of

respondents skills are not recognized by superiors.

· It is found out that, 74% of respondents feel that superiors are taking efforts to

motivate them and 26% of respondents feel that superiors are not taking efforts to

motivate them.

· It is found out that, 83% of respondents feel that workload is manageable and 10% of

respondents feel that workload is very hard to manage.

· It is found out that,55% of respondents feels that the field worker are able to get

updates on internal activities, and 45% of respondents feels that the field worker are not

able to get updates on internal activities.

· It is found out that, 89% of respondents feel that the superiors are easily accessible

and 11% of respondents feel that the superiors are not easily accessible.

· It is found out that, 51% of respondents feel that their complaints are resolved quickly

and 49% of respondents feel that their complaints are not resolved quickly.

· From weighted Average analysis it is found that most of the respondents are satisfied

with the working hours of the organization

· From weighted Average analysis it is found that roles & responsibilities are clearly

defined by the Reporting heads.

· From weighted Average analysis it is found that employees feel that their superior's

commitment towards job is good.

· From weighted Average analysis it is found that respondents feel that training and

orientation programs are neither good nor bad.

· From weighted Average analysis it is found that most of the respondents are satisfied

with job.

· From chi-square it is found that there is a significant relationship between Work

Culture of the Company and interpersonal relationship between employees.

· From chi-square it is found that there is a no significant relationship between overall

satisfaction and Commitment towards Company.

· From chi-square it is found that there is a significant relationship between overall

satisfaction and aspects of job.

· From Kendall’s coefficient of concordance it is found that there is a significant

difference in the rank assigned by respondents towards the attributes that gives them

satisfaction in the company.

· From One Run Test it is found that the samples are taken randomly.

SUGGESTIONS

Employee should be provided with proper training.

Employee should be appreciated for good work.

Employee should be motivated to welcome the change.

If any changes are brought in to software or any module is added then 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 behavior, 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. Any technology needs motivated employees to adopt it successfully.

Several approaches to Retention are available. Early theories are too simplistic in

their approach towards Retention. For example, advocates of scientific

Management believe that money is the motivating factor. The Human Relations

Movement posits that social contacts will motivate workers. Mere knowledge

about the theories of Retention will not help manager their subordinates. They

need to have certain techniques that help them change the behavior of

employees. One such technique is reward. Reward, particularly money, is a

motivator according to need-based and process theories of Retention. For the

behavioral scientists, however, money is not important as a motivator. Whatever

may be the arguments, it can be stated that money can influence some people in

certain circumstance. Being an outgrowth of Herzberg’s, two factor theory of

Retention, job enrichment is considered to be a powerful motivator. An enriched

job has added responsibilities. The makes the job interesting and rewarding. Job

enlargement refers to adding a few more task elements horizontally. Task variety

helps motivate job holders. Job rotation involves shifting an incumbent from one

job to another.

RECOMMENDATIONS

1. Develop an attractive employee value proposition.

An employee value proposition means that your company has something attractive to

offer that is perceived as valuable to an employee. As an employer, you must

understand what makes your organization attractive to potential recruits and current

employees. Branding yourself as an employer of choice is not just a slick set of

marketing tactics. The best advocates for an employer’s brand are its current

employees. What messages do they send to others about their employer? Are they

honestly saying and believing that,

“This is a great place to work.”

2. Create a total reward structure that includes more than compensation.

Every company should have all the normal compensation mechanisms common to their

type of employment. yet, total rewards packages go far beyond money. While money

might temporarily retain employees, it does not always equate with engagement. People

want a chance to make a difference and realize themselves. That self-realization is

multi-dimensional and different for each employee. The total reward structure should

include,

in addition to compensation, support for employees to attain their personal objectives

aligned with the goals of their organization.

3. Give feedback on employee performance on a regular basis.

Most managers and employees are not enamored with the performance appraisal

process in their organization. yet, an effective performance management process

serves many purposes. Ongoing performance feedback allows employees to better

know where they stand, gives them a formal means to provide input, and indicates that

their managers pay attention to them and that their performance matters. This feedback

contributes to employee engagement and retention.

4. 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. It calls for a different managerial mindset and practices that involve

letting go of old ways of controlling workers’ time and attendance in favor of result

criteria such as output, productivity and quality.

5. 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. It is organizations that create the culture and

climate that allow people, processes and projects to become fully connected and

engaged with one another. Engaged employees are more likely to stay with their

employer.

6. Train managers to be effective.

Exit interviews consistently show that “poor and bad” management practices greatly

contribute to an employee’s 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. Professor Patrick Connor, recently

retired after teaching 25 years at the Atkinson Graduate school of Management, is

famous among MBA students and alumni for his ‘Connors’s.’ He told them, “your

employees do not work for you, they work for themselves.” When I teach my students

about managing organizations, I have them reflect on what really matters to employees

and what they are constantly asking of their managers and their organizations. In the

end, what employees expect of their managers is fairly simple: Can I trust you? Are you

committed to excellence? Do you care about me? What people constantly ask

of their organization is: Do you tell the truth? Do you keep promises? Do you act

fairly? Do you respect me? Managers and organizations that keep these questions in

mind will have a competitive advantage over others in retaining their employees.

BIBLIOGRAPHY

BOOKS

· Human Resource Management C.B.Memoria

· Research methodology C.R.Kothari

· Journals, Newspaper and Internet

References from EBSCO

1. COMPETING ON TALENT ANALYTICS.

By: Davenport, Thomas H.; Harris, Jeanne; Shapiro, Jeremy. Harvard Business Review,

Oct2010, Vol. 88 Issue 10, p52-587p, 2 Illustrations, 1 Diagram

2.Recruitment and retention in foreign firms in India: A resource-based view.

By: Holtbrügge, Dirk; Friedmann, Carina B.; Puck, Jonas F.. Human Resource

Management, May/Jun2010, Vol. 49 Issue 3, p439-45517p, 1 Diagram, 2 Charts

3.Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies.

By: Allen, David G.; Bryant, Phillip C.; Vardaman, James M.. Academy of Management

Perspectives, May2010, Vol. 24 Issue 2, p48-6417p, 3 Diagrams, 4 Charts; DOI:

10.5465/AMP.2010.51827775

employee retention project final copy

Documents