TABLE OF CONTENTS

CONTENTS PAGE NUMBERS

1. CHAPTER 1 1−5 Introduction 1 Need,Objectives and Scope of the study 3 Research methodology 4 Scope and limitations of the study 5

2. CHAPTER 2 6−20 Review of literature Recruitment Review of Literature Retention 21-30

3. CHAPTER 3 32-36

Analysis and interpretations Analysis of Retention Strategies across companies

4. CHAPTER 4 36-38 Questionnaire Bibliography 38

Introduction

Until now very few organizations in India paid attention to manpower planning although they took more care in planning capital and material resources needed for the organizational operations. Manpower was not considered to be a bottleneck factor claim the precious time of top management.

The changing job requirement and the growing complexity of management gave arise to

manpower shortage and redundancies. Management is therefore now gradually recognizing the

need of ensuring the availability of required skill and avoiding or minimizing redundancies.

“Manpower” or “Human Resources” is “the total knowledge, skill, creative, abilities, talent and

aptitudes of an organization workforce, as well as the values, attitudes and benefits of an

individual involved. It is the sum total of inherent abilities, acquired knowledge and skills

represented by the talents and aptitude of the employed person.” Manpower refers to the adult

and working human beings in modern societies, the men and women, who employ others or are

employed in business, industry and government. Manpower includes both employer and

employee. It is the most valuable asset of an organization.

Of all the factors of production (management of materials, machines, methods, money men), the

most important is men or human resources. It is indeed an important economic resource,

covering all human resources organized or unorganized, employed or capable of employment,

working at all levels. Workers, supervisors, executives, government employees, managerial,

scientific, engineering, technical, skilled or unskilled persons, who are employed in creating,

designing, developing, managing and operating productive and service enterprises and other

economic activities. Managing manpower is direction and control of human resources in

employment.

Due to improvement of technology and use of computer in the organization to perform the given

task faster and more efficiently, it is important that any enterprise which is determined to

succeed in the present situation of liberalization and exposure to market forces have manpower

which is geared up to work and perform to the satisfaction of the top management. An

organization performance and resulting productivity are directly proportional to the quantity and

quality of its human resource.

The scarce resources like machine, material, money etc by themselves will not help the

organization to accomplish the objectives unless there is use of human resource, which make

plans and helps in achieving company’s objective in efficient and effective manner.

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Hence men as resource in organization play a vital role. To achieve the organizational goals

there should be effective co-ordination and utilization of these human and non-human resources

assumes much significance.

The primary job of manpower management is to develop effective programs for attaining these

personal and social objectives through in employment. The manpower managers must conserve

manpower and to make the best possible application and the best possible application

(utilization) and the best possible disposition (allocation) of manpower resource in order to

survive, prescribe and enforce their own efficient application and their combination with others

which include conservation, their avoidance and minimization of wastes, is the responsibility of

manpower management.

Managing people at work and control of human activities in employment is a function that must

be performed in all societies. It is essential in every type of employment for every occupation

and every type of employed manpower. Manpower management is essential in government as

well as private employment, under socialism or communication in small business and in large.

The development, allocation, utilization and conservation of human resource through their

employment are a continuing inevitable process.

To maintain and upgrade human resource, he has to be given or sent for training and

development programs at required time and performance should be appraised and employees

should be motivated so that employee can give best to the organization.

Recruitment is a process to discover the source of manpower to meet the requirements of the

staffing and to employ effective measures for attaining the manpower in adequate number to

facilitate effective selection of an efficient working function. Along with this the employee

training and development is an activity that an organization must commit resources to maintain

knowledge workforce. Stating that if recruitment is analogous to the process of lubricants and

keeping the vehicle in condition ready to use may sum it up.

Employees are the most valuable assets of any organization attracting the most

qualified employees and matching them to the jobs for which they are best suited is important for

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the success of any company. The HRM function includes a variety of activities and dealing with

performance issues etc… but the most challenging for the HR professionals today is not only to

attract, attain the excellent employees but also to retain them there fore HR professionals must

focused on key retention issues such as to offer an attractive competatitive benefits package with

components such as life insurance, flexible work hours, recognize and rewards, training and

development etc….

NEED FOR THE STUDY:

Getting the right talent for an Organization is challenging task. Retaining talent in an Organization is uphill task. There is a necessity to continuously monitor the effectiveness of recruitment and

retention strategies and upgrade.

OBJECTIVES OF THE STUDY:

To study the HR planning, sourcing techniques in recruitment process. To find out the Internal Recruitment process in the organization. To study the effective implementation of HR policies in recruitment process. To find out the measures to improve multiskilling activities with in the organization. To study about different retention strategies which are following in the organization To find out measuring the effectiveness of talent management process. To study about the different practices to retain potential talent pool.

SCOPE OF THE STUDY:The scope of the study is limited to the employees of UltraTech Cement Ltd, A.P Cement Works, Tadipatri. The following cadre employees are covered in this study.

Section Heads Officers Engineers

RESEARCH METHODOLOGY:

MEANING OF RESEARCH:Research in common parlance refers to a search for the knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. Research methodology is a part of scientific investigation.

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According to Clifford Woody, research comprises of defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions to determine whether they fit the formulating hypothesis.

In short, the search for the knowledge through objective and systematic method of finding solution to a problem.

POPULATION SIZE:There are 520 employees are working in UltraTech Cement Ltd, A.P Cement Works, Tadipatri. The strength of the officers is 40.

SAMPLE SIZE:The group size is 40, out of them the sample size is 25 excluding other due to time feasibility.

SAMPLING METHOD:The source of the list of the employees procured from HR department. The researcher selected employees randomly by covering all the departments.

SURVEY METHOD: Survey method was adopted to collect the data. Survey method is concerned with describing, recording, analyzing and interpreting existing conditions. Also; it is concerned with opinions that are held, processes that are going on. Since survey is a field research a hypothesis was formulated. For the purpose of collecting data stratified random sampling techniques was adopted. Accordingly a questionnaire was designed using liker type scale to gather relevant feedback on recruitment and retention survey in the organization.

STASTICAL TOOL: This study utilized percentage analysis used to find the entire gamete of employees in to positive and negative feed backers. The same is implied for the each dimension of the study.

Percentage Analysis = Number of respondents ----------------------------------------- * 100

Total number of respondents (For a particular question)

Dimensions of the study:

Clarity of role Job rotation Succession planning Attracting right talent Career growth opportunities Working conditions

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Interpersonal relationship Reward and recognition Work life balance

DATA COLLECTION METHODS:Questionnaire method is used for data collection in the present study on Recruitment and Retention of Employees Impact of Strategies.

The following four scales used for grading:

1- Strongly Agree2- Agree3- Disagree4- Strongly Disagree

DATA TABULATION:Tally method used for data tabulation & percentage method is used for data analysis

LIMITATIONS OF THE STUDY:1. My study is confirmed to the only some selected employees of the organization.2. Time being very limited the researcher could not get a chance to have a close interaction

with the respondents.3. Due to confidential matters the respondents could not reveal them openly.

CHAPTER 2CHAPTER 2

RREVIEWEVIEW OFOF LITERATURELITERATURE

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RECRUITMENT

INTRODUCTION:

The first step in the procurement function that is manpower planning aims at ascertaining the manpower needs of the organization both in right number and or right kind. Once a determination of human resources requirements has been made, the recruitment process can begin it is often termed “positive” in that objective is to increase the selection ratio that is number of applicants per job opening. Some people its called as the recruitment for employment.

Meaning of Recruitment:The term ‘recruitment’ applies to the process of attracting potential employees to the

organization. To recruit means to enlist, replenish or reinforce. It refers to the process of

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bringing together prospective employees and employer with a view to stimulate and encourage

the former to apply for a job with the latter. Thus, it is a ‘linking activity’ bringing together

those with jobs and those seeking jobs. The purpose of recruitment is to prepare an inventory of

people who meet the criteria laid down in job specifications so that the organization may choose

those who are found most suitable for the position vacant.

According to Dale Yoder, “Recruitment is a process to discover the sources of manpower to

meet the requirements of the staffing schedule and to employ effective measures for attracting

that manpower in adequate numbers to facilitate effective selection of an efficient working

force”. Thus, the purpose of recruitment is to locate sources of manpower to meet job

requirement and job specifications.

Author’s Definition:EDWIN B. FLIPPO defines recruitment as “the process of searching for prospective employees

and stimulating them to apply for jobs in the organization”.

HAWK defines recruitment as “the purposes of recruitment function are patently straight

forward to see out evaluate, obtain commitment from place and orient new employees to fill

positions, require for the success full conduct of the work of an organization”.

There are three main stages in recruitment:

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(1) Identify and define the requirements. This involves the preparation of job descriptions,

job specifications and person specifications

(2) Attract potential employees – there are various methods for doing this – which are

described in a separate revision note

(3) Select and employ the appropriate people from the job applicants

Objectives of Recruitment:(1) To attract people with multi-dimensional skills and experiences that suits the present and

future organizational strategies.

(2) To develop an organizational culture that attracts competent people to the company.

(3) To induct outsiders with a new perspective to lead the company.

(4) To recruit people whose skills fit the company values.

(5) To search for talent globally and not just with in the company.

(6) To device methodology for assessing psychological traits.

(7) To design entry pays that computes on quality but not on quantum.

(8) To anticipate and find people for positions that does not exist yet.

Purpose & Importance of Recruitment

Attract and encourage more and more candidates to apply in the organization.

Create a talent pool of candidates to enable the selection of best candidates for the organization.

Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.

Recruitment is the process which links the employers with the employees.

Increase the pool of job candidates at minimum cost. Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants.

Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.

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Meet the organizations legal and social obligations regarding the composition of its workforce.

Begin identifying and preparing potential job applicants who will be appropriate candidates.

Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants

SOURCES OF RECRUITMENT

Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment

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SOURCES OF RECRUITMENT

INTERNAL SOURCES OF RECRUITMENT

1. TRANSFERSThe employees are transferred from one department to another according to their efficiency and experience.

2. PROMOTIONSThe employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.

3. Others are Upgrading and Demotion of present employees according to their

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performance.

4. Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures.

5. The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.

EXTERNAL SOURCES OF RECRUITMENT

1. ADVERTISEMENT:

Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.

2.EDUCATIONALINSTITUTES

various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.

3. PLACEMENT AGENCIES Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing)

4. EMPLOYMENT EXCHANGES

Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.

5. LABOUR CONTRACTORS

Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labor for construction jobs.

6. UNSOLICITED APPLICANTS

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Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization.

7. EMPLOYEEREFERRALS/RECOMMENDATIONSMany organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.

8. RECRUITMENT AT FACTORY GATE: skilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.

FACTORS AFFECTING RECRUITMENT

The recruitment function of the organizations is affected and governed by a mix of various internal and external forces. The internal forces or factors are the factors that can be controlled by the organization. And the external factors are those factors which cannot be controlled by the organization. The internal and external forces affecting recruitment function of an organization are:

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FACTORS AFFECTING RECRUITMENT

INTERNAL FACTORS EFFCTING RECRUITMENT

The internal forces i.e. the factors which can be controlled by the organization are:

1. RECRUITMENT POLICY:The recruitment policy of an organization specifies the objectives of recruitment and provides a framework for implementation of recruitment programme. It may involve organizational system to be developed for implementing recruitment programmes and procedures by filling up vacancies with best qualified people.

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FACTORS AFFECTING RECRUITMENT POLICY:• Organizational objectives• Personnel policies of the organization and its competitors.• Government policies on reservations.• Preferred sources of recruitment.• Need of the organization.• Recruitment costs and financial implications.

2. HUMAN RESOURCE PLANNING:

Effective human resource planning helps in determining the gaps present in the existing manpower of the organization. It also helps in determining the number of employees to be recruited and what qualification they must possess.

3. SIZE OF THE FIRM:

The size of the firm is an important factor in recruitment process. If the organization is planning to increase its operations and expand its business, it will think of hiring more personnel, which will handle its operations4. COST:Recruitment incur cost to the employer, therefore, organizations try to employ that source of recruitment which will bear a lower cost of recruitment to the organization for each candidate.

5. GROWTH AND EXPANSION:Organization will employ or think of employing more personnel if it is expanding it’s operations.

EXTERNAL FACTORS EFFECTING RECRUITMENT

The external forces are the forces which cannot be controlled by the organization. The major external forces are:

1. SUPPLY AND DEMAND: The availability of manpower both within and outside the organization is an important determinant in the recruitment process. If the company has a demand for more professionals and there is limited supply in the market for the professionals demanded by the company, then the company will have to depend upon internal sources by providing them special training and development programs.

2. LABOUR MARKET:

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Employment conditions in the community where the organization is located will influence the recruiting efforts of the organization. If there is surplus of manpower at the time of recruitment, even informal attempts at the time of recruiting like notice boards display of the requisition or announcement in the meeting etc will attract more than enough applicants.

3. IMAGE / GOODWILL: Image of the employer can work as a potential constraint for recruitment. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with negative image. Image of a company is based on what organization does and affected by industry. For example finance was taken up by fresher MBA’s when many finance companies were coming up.

4. POLITICAL-SOCIAL- LEGAL ENVIRONMENT: Various government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment practices. For example, Government of India has introduced legislation for reservation in employment for scheduled castes, scheduled tribes, physically handicapped etc. Also, trade unions play important role in recruitment. This restricts management freedom to select those individuals who it believes would be the best performers. If the candidate can’t meet criteria stipulated by the union but union regulations can restrict recruitment sources.

5. UNEMPLOYMENT RATE: One of the factors that influence the availability of applicants is the growth of the economy (whether economy is growing or not and its rate). When the company is not creating new jobs, there is often oversupply of qualified labor which in turn leads to unemployment.

6. COMPETITORS: The recruitment policies of the competitors also affect the recruitment function of the organisations. To face the competition hav, many a times the organisations have to change their recruitment policies according to the policies being followed by the competitors.

Recruitment Process

The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organisations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows:

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1.Identifyingthevacancy: The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain:

Posts to be filled Number of persons Duties to be performed Qualifications required

2. Preparing the job description and person specification.

Locating and developing the sources of required number and type of employees (Advertising etc).

3. Short-listing and identifying the prospective employee with required characteristics.

4. Arranging the interviews with the selected candidates.

5. Conducting the interview and decision making

Recent Trends in RecruitmentThe following trends are being seen in recruitment:

OUTSOURCINGin India, the HR processes are being outsourced from more than a decade now. A company may draw required personnel from outsourcing firms. The outsourcing firms help the organization by the initial screening of the candidates according to the needs of the organization and creating a suitable pool of talent for the final selection by the organization. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the organisations for their services.

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Advantages of outsourcing are:

Company need not plan for human resources much in advance.

Value creation, operational flexibility and competitive advantage

turning the management's focus to strategic level processes of HRM

Company is free from salary negotiations, weeding the unsuitable resumes/candidates.

Company can save a lot of its resources and time

POACHING/RAIDING“Buying talent” (rather than developing it) is the latest mantra being followed by the organisations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organization might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about. Indian software and the retail sector are the sectors facing the most severe brunt of poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm.

E-RECRUITMENTMany big organizations use Internet as a source of recruitment. E- Recruitment is the use of technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements.

Advantages of recruitment are:

1. Low cost.

2. No intermediaries

3. Reduction in time for recruitment.

4. Recruitment of right type of people.

5. Efficiency of recruitment process.

Advantage & Disadvantage Of E-Recruitment

There are many benefits – both to the employers and the job seekers but the e-recruitment is not free from a few shortcomings. Some of the advantages and the disadvantages of e- recruitment

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are as follows:

Advantages of E-Recruitment are:

Lower costs to the organization. Also, posting jobs online is cheaper than advertising in the newspapers.

No intermediaries.

Reduction in the time for recruitment (over 65 percent of the hiring time).

facilitates the recruitment of right type of people with the required skills.

Improved efficiency of recruitment process.

Gives a 24*7 access to an online collection of resumes.

Online recruitment helps the organisations to weed out the unqualified candidates in an automated way.

Recruitment websites also provide valuable data and information regarding the compensation offered by the competitors etc. which helps the HR managers to take various HR decisions like promotions, salary trends in India.

Disadvantages of E-Recruitment

Apart from the various benefits, e-recruitment has its own share of shortcomings and disadvantages. Some of them are:

1. Screening and checking the skill mapping and authenticity of million of resumes is a problem and time consuming exercise for organisations.

2. There is low Internet penetration and no access and lack of awareness of internet in many locations across India.

3. Organizations cannot be dependant solely and totally on the online recruitment methods.

4. In India, the employers and the employees still prefer a face-to-face interaction rather than sending e-mails.

Recruitment Techniques:

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Recruitment techniques are the means of the media by which management contracts provide

prospective employees necessary information or exchange idea to stimulate them to apply for

jobs. Management uses different types of techniques internal and external candidates.

Techniques useful to stimulating inter candidates are:

Promotions: most of internal candidates would be stimulated to take up higher

responsibilities and express their willingness to be engaged in higher level jobs in

management give them the assurance that they will be promoted to the next

higher level.

Transfers: employees will be stimulated job work in the sections or places if

management wishes to transfer them to the places of their choice.

Recommendations of present employees: management can contact persuade the

outsider’s to apply for jobs in the organization through the recommendations to

the candidates by the present employees, trade union leader etc.

Scouting: scouting means sending the representation of the organization to various

source of recruitment with a view to pursuit or stimulating the candidates to apply

for the jobs. The representatives provide information about the company

exchange information and ideas and clarify the doubts of the candidates.

Advertising: advertising is rightly accepted techniques of recruitment that

provide one-way communication. It provides the candidates the

different sources of information about the job and company and

stimulates them to apply for jobs. It includes advertising through

different newspapers, magazines of all kinds, radio, TV.

The technique of advertising should aim at:

Attracting the attention of prospective candidates.

Creating and maintaining interest.

Stimulating the action by the candidate.

Management in order to achieve these objectives of the advertising has to:

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Analyze the bob requirements

Decide who does what

Write a copy design the advertisement

Evaluate the response

The management after selecting the recruitment techniques it has to decide the type of appeal in

order to make the recruitment efforts effectively.

Employee RetentionIntroduction:Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s environment it becomes very important for organizations to retain their employees.

The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons

The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention.

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In this section we are going to study about various topics related to employee retention, why is it needed, basic practices, myths, etc. in detail.

What is Employee Retention?

Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee.

Employees today are different. They are not the ones who 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. Retention involves five major things

1. 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.

Growth and Career: 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

Personal growth and dreamsTraining and development

2. 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.

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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, et al.

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:

By providing feedback

By giving recognition and rewards

By counseling them

By providing emotional support

3. Importance of Relationship in Employee Retention ProgramSometimes 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 individualRelationship with the immediate managerRelationship with colleaguesRecruit whole heartedlyPromote an employee based cultureIndividual development

4. Organization EnvironmentIt 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

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Appreciation for the work done

Ample opportunities to grow

A feeling that the organization is second home to the employeeOrganization environment includes

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies

Trust

Importance of Employee Retention

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.

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.

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Interruption of Customer Service: Customers and clients do business with a company in part because of the people. Relationships are developed that encourage continued sponsorship of the business. When an employee leaves, the relationships that employee built for the company are severed, which could lead to potential customer loss.

Turnover leads to more turnovers: When an employee terminate s, the effect is felt throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff.

Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization.

Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her and this goes to the loss of the company directly which many a times goes unnoticed. And even after this you cannot assure us of the same efficiency from the new 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:

1. Job and person mismatch

2. No growth opportunities

3. Lack of appreciation

4. Lack of trust and support in coworkers, seniors and management

5. Stress from overwork and work life imbalance

6. Compensation

7. New job offer

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 them and respect them.5. Provide them information and knowledge.

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6. Keep providing them feedback on their performance.7. Recognize and appreciate their achievements.8. Keep their morale high.10. Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels: Low, medium and high level.

Low Level Employee Retention Strategies

Appreciating and recognizing a well done job

Personalized well done and thank-you cards from supervisors

Congratulations e-cards or cards sent to spouses/families

recognizing professional as well as personal significant events

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Wedding gifts

Anniversary gifts

Scholarships for employee’s children

Get well cards/flowers

Birthday cards, celebrations and gifts

providing benefits

Home insurance plans

Legal insurance

Travel insurance

providing perks: It includes coupons, discounts, rebates, etc

o Discounts in cinema halls, museums, restaurants, etc.

o Retail store discounts

o Computer peripherals purchase discounts

providing workplace conveniences

On-site facilities for which cost is paid by employees

laundry facility for bachelors

Shipping services

Assistance with tax calculations and submission of forms

Financial planning assistance

Facilities for expectant mothers

Parking

Parenting guide

Lactation rooms

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Flexi timings

Fun at work

Celebrate birthdays, anniversaries, retirements, promotions, etc

Holiday parties and holiday gift certificates

Organize get together for watching football, hockey, cricket matches

Organize picnics and trips for movies etc

Sports outings like cricket match etc

Indoor games

Occasional stress relievers

“Casual dress” day

“Green is the color” day

Handwriting analysis

Mini cricket in office

Ice cream Fridays

Employee support in tough time or personal crisis

o Personal loans for emergencies

o Childcare and eldercare services

o Employee Assistance Programs ( Counseling sessions etc)

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

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Medical care reimbursement

providing conveniences at workplace

Gymnasiums

Athletic membership program

providing training and development and personal growth opportunities

o Sabbatical programs

o Professional skills development

o Individualized career guidance

High Level Strategies Promoting Work/Life Effectiveness

Develop flexible schedules

Part-time schedules

Develop Support Services

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

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 Higher study opportunities for employees

o Offer personalized career guidance to employees

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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 t aken from the employees by:

Management communications

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

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.

o 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.

o Referral bonus should be given to the employees for successful hires. They are the best source of networking.

o Proper training should be given to the managers on interview and management techniques.

Retention success mantras

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1. Transparent work culture

2. Quality of work

Suitable working timeappropriate salary

3 supporting employees

Manage employee turnover Become employer of choice Engage the new recruits

Optimize employee engagement

Coaching and mentoring

4. Feedback

5. Communication between employer and employee

6. Employee turnover7. Attrition rate

Managing employee retention

The task of managing employees can be understood as a three stage process:1. Identify the cost of employee turnover2. Understand why employees leave3. Implement retention strategies

Identify the cost of employee turnover: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

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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

The organization’s reward strategy reflects the employee drivers

How to Increase Employee RetentionCompanies 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.

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Employee retention can be increase by inculcating the following practices:

Open Communication: A culture of open communication enforces loyalty among employees. Open communication tends to keep employees informed on key issues. Most importantly, they need to know that their opinions matter and that management is 100% interested in their input.

Employee Reward Program: A positive recognition for work boosts the motivational levels of employees. Recognition can be made explicit by providing awards like best employee of the month or punctuality award. Project based recognition also has great significance. The award can be in terms of gifts or money.

Career Development Program: Every individual is worried about his/her career. He is always keen to know his career path in the company. Organizations can offer various technical certification courses which will help employee in enhancing his knowledge.

Performance Based Bonus: A provision of performance linked bonus can be made wherein an employee is able to relate his performance with the company profits and hence will work hard. This bonus should strictly be productivity based.

Recreation facilities: Recreational facilities help in keeping employees away from stress factors. Various recreational programs should be arranged. They may include

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taking employees to trips annually or bi-annually, celebrating anniversaries, sports activities, et al.

Gifts at Some Occasions: Giving out some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them.

Analysis of Employee Retention:

Employer and Their Key Drivers to Attract and Retain Talent

Employers Key Drives To Attract And Retain TalentProcter and Gamble India o Early responsibilities in career

o Flexible and transparent organizational cultureo Global opportunities through a variety of

exposure and diverse experiences

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o Performance Recognition

American Express (India)

o Strong global brando Value-based environmento 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

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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 ad 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

o Company brand imageo Work ethicso Learning and growth opportunitieso Challenging work assignmentso Growing organization

TCS

o The group brand equityo Strong corporate governance and citizenshipo Commitment to learning and developmento Best in people practiceso Challenging assignments

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Questionnaires on Recruitment and Retention of Employees – Impact of Strategies

Questionnaire is: “A study on Recruitment and Retention of Employees – Impact of Strategies” in Ultra Tech Cement Limited-APCW. This study is only for academic purpose and the information given by you will be kept confidential and communicated to HR department for considering improvement. Therefore, you are requested to write the scaling against each statement and submit the same.

SCALE: 1)Strongly agree,2)Agree,3)Disagree,4)Strongly disagree.

1. Organization clearly understands the manpower planning, sourcing and selection techniques ( )

2. Organization practices the proper assessment techniques for recruiting employees ( ) 3. Organization always ensures that capable /quality persons are recruited against vacancy ( )

4. Internal recruitment scheme benefits career advancement ( )

5. Organization is capable to implement new initiatives/change processes in recruitment ( ) 6. Job rotation process provides individual career growth opportunities in the organization ( )

7. Job rotation helps in developing multi skilling ( )

8. I am aware of my position description ( ) 9. Succession planning helps filling position in the organization in time ( )10. Continuous analysis of the current industry trends and practices helps recruiting a new employee ( )

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11. Organization always matches the position and compensation of existing employees while recruiting a new employee ( ) 12. Organization cares for up-gradation, when suitable vacancy occurs ( )13. Employee referrals can be encouraged ( ) 14. Organization ensures development of resources for various roles ( )

15. Healthy relations between superior and subordinates exist in our Organization ( ) 16. Organization is following talent management process and is able to retain talented employees ( ) 17. Organization always encourages innovative ideas and suggestions ( )18. If i were to do something exceptional organization would give sufficient opportunity and publicity to my achievements ( ) 19. Organization always takes a long-term perspective on people issues ( )20. I am satisfied with the infrastructure, equipment provided to perform my work ( ) 21. I have a good peer group relation in my daily work ( ) 22. I empowered to perform my job ( ) 23. I have fair opportunities to up-grade my knowledge and skills ( ) 24. Reward and recognition scheme influences a lot ( ) 25. Competitive Spirit exists in our organization ( ) 26. I can manage my work life-balance with my regular activities ( )

27. I get professional as well as personal satisfaction with the work culture ( )

28. My superior encourages me to take calculated risks in my work ( ) 29. Constructive criticism helps bringing about improvement at work and individual development ( )

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30. Any suggestions, you would like to come out with on –

Recruitment1.2.3.4.5.

Retention 1.2.3.4.5.

Bibilography:1. EDWIN B. FLIPPO: Personal Management

2. L.M. Prasad: Human Resources Management

Internet sites:

www.citehr.comwww.mindstool.com

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