EMPLOYEE RETENTION IN HCL
submitted in
par ti tial f ulf illment for the awar d of the degr ee ee of Master s of Business Administration , Punjab Technical Univer sity sity, Jala ndhar (2000-11)
Submitted to:
Submitted by: Name: Simranjeet kaur
RBIEBT (MBA)
Univer sity sity Roll no.
____________________________________________________________ Rayat & Bahra Institute of Enginee r ing ing and Bio- Technology (MBA),
Sahauran, Kharar.
DECLARATION
I the undersign hereby declare that the project report entitled ´Employee Retention in HCLµ written and submitted by me to RBIEBT, Sahauran in partial fulfillment of the requirement for the award of M.B.A under the guidance of my mentor Mr. TANVIR SINGH NOOR,
is my original
work and the conclusion drawn there in are based on the material collected by myself. I hereby declare also this study has not n ot been permitted by me to publish anywhere.
Simranjeet k aur aur
DECLARATION
I the undersign hereby declare that the project report entitled ´Employee Retention in HCLµ written and submitted by me to RBIEBT, Sahauran in partial fulfillment of the requirement for the award of M.B.A under the guidance of my mentor Mr. TANVIR SINGH NOOR,
is my original
work and the conclusion drawn there in are based on the material collected by myself. I hereby declare also this study has not n ot been permitted by me to publish anywhere.
Simranjeet k aur aur
ACKNOWLEDGEMENT I take the opportunity to express our gratitude to all the concerned people who have directly or indirectly contributed towards completion of this project. I extend my sincere gratitude towards HCL Career Development Center (Mohail) for providing the opportunity and resources to work on this project. I am extremely grateful to Mr. TANVIR SINGH NOOR, my mentor in HCL for his guidance and invaluable advice during the project whose insight encouraged me to go beyond the scope of the project and this broadened me learning on this project.
Simranjeet kaur
PREFACE
Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. How to retain valuable employees is one of the biggest problem that plague companies in the competitive marketplace. Not too long ago, companies accepted the ´revolving door policyµ as part of doing business and were quick to fill a vacant job with another eager candidate. Nowadays, businesses often find that they spend considerable time, effort, and money to train an employee only to have them develop into a valuable commodity and leave the company for greener pastures. In order to create a successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in the future.
CONTENTS
Introduction
CHAPTER 1 INTRODUCTION
Companies today are forced to function in a world full of change and complexity, and it is more important than ever to have the right employees in order to survive the surrounding competition. It is a fact that a too high turnover rate affects companies in a negative way and retention strategies should therefore be high on the agenda. When looking at this problem area we found that there may be actions and tools that companies could use to come to terms with this problem. Research told us that leadership, remuneration and elements like participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere is important for job satisfaction and retention. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many Organizations which are looking for such employees. If a person is not satisfied by the job 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.
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
IMPORTANCE OF EMPLOYEE RETENTION The Cost of Tur nover: 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.
Interr uption of Customer S er vice: 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.
Tur nover leads to mor e tur nover s: When an employee terminates, the effect is felt throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff.
Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization.
Regaining eff iciency: 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 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 2) environment 3) growth
4)
relationship
5) support
WHY EMPLOYEES LEAVE THE ORGANISATION Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. The most common reasons can be: Job is not what the employee expected to be: Sometimes the job responsibilities 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. y
No growth oppor tunities: No or less learning and growth opportunities in the current job will make candidate¶s job and career stagnant.
y
Lack of appr eciation: If the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job.
y
Lack of tr ust and suppor t in coworker s, senior s and management: Trust is the most important factor that is required for an individual to stay in the job. Nonsupportive coworkers, seniors and management can make office environment unfriendly and difficult to work in.
y
Str ess from overwork and work lif e imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization.
y
Compensation: Better compensation packages being offered by other companies may attract employees towards themselves.
y
New job off er: 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.
STRATEGIES FOR EMPLOYEE RETENTION The basic practices which should be kept in mind in the employee retention strategies are:
1. Hire the right people in the first place.
2. Empower the employees: Give the employees the authority to get things done.
3. Make employees realize that they are the most valuable asset of the organization.
4.
Have faith in them, trust them and respect them.
5. Provide them information and knowledge. 6. Keep providing them feedback on their performance.
7. Recognize and appreciate their achievements.
8. Keep their morale high.
9. Create an environment where the employees want to work and have fun.
. These practices can be categorized in 3 levels: Low, medium and high level.
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.
Employee retention can be increase by inculcating the following practices: 1. Open Communication: A culture of open communication enforces loyalty among employees. Open communication tends to keep employees informed on key issues. Most importantly, they need to know that their opinions matter and that management is 100% interested in their input.
2. Employee Rewar d 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.
3. Car eer Development Program: Every individual is worried about his/her career. He is always keen to know his career path in the company. Organizations can offer various technical certification courses which will help employee in enhancing his knowledge.
4.
Perfor mance 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.
5. Recr eation facilities: Recreational facilities help in keeping employees away from stress factors. Various recreational programs should be arranged. They may include taking employees to trips annually or bi-annually, celebrating anniversaries, sports activities, et al.
6. Gif ts at Some Occasions: Giving out some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them.
RETENTION MYTHS The process of retention is not as easy at it seems. There are so many tactics and strategies used in retention of employees by the organizations. The basic purpose of these strategies should be to increase employee satisfaction, boost employee morale hence achieve retention. But some times these strategies are not used properly or even worse, wrong strategies are used. Because of which these strategies fail to achieve the
desired results. There are many myths related to the employee retention process. These myths exist because the strategies being used are either wrong or are being used from a long time. These myths prevent the employer from successfully implementing the retention strategies. Let us learn about some of these myths. 1. Employees leave an organization for more pay: Money may be the motivating factor for some but for many people it is not the most important factor. Money matters more to the low-income-employees for whom it¶s a survival issue. Money can make an employee stay in an organization but not for long. The factors more important than money are job satisfaction, job responsibilities, and individual¶s skill development. The employers should understand this and work out some other ways to make employees feel satisfied. When employees leave, management tries to retain them by offering more money. But instead they should try to figure out the main reason behind it. Issues that are mainly the cause of dissatisfaction are organization¶s policies and procedures, working conditions, relationship with the supervisor and salary, etc. For such employees, achievement, growth, respect, recognition, is the main concern.
2. Incentives can increase productivity: Incentives can surely increase productivity but not for long term. Cash incentives, volume work targets and speed awards are old management beliefs. They can generate work speedily and in volumes but can¶t boost employee commitment. Rather speed can hamper the quality of work produced. What really glues employees to their work and organization is quality work, meaningful responsibilities, recognition, respect, growth opportunities and friendly supervisors.
3. Employees run away from responsibilities: It is a myth that employees run from responsibilities. In-fact employees feel more responsible if they are given extra responsibilities apart from their regular job. Employees look for variety, greater
control on the processes and authority to take decisions in their present job. They want
opportunities
to
learn
and
grow.
Management
can
assign
extra
responsibilities to their employees and appreciate them on the completion of these tasks. This will induce a sense of pride in the employee and will improve the relationship between the management and the employee.
4.
Loyalty is a thing of the past: Employees can be loyal but what they need is an employer for whom they can be loyal. There is no reason for the employee to hop jobs if he¶s satisfied with the employer.
5. Taking measures to increase employee satisfaction will be expensive for the organizations: The things actually required to improve employee satisfaction like respect, career growth and development, appreciation, etc. can¶t be bought. They are free of cost. An employer or management that reacts well to the employee¶s ideas and suggestions is enough for the employees to be retained.
MANAGERS ROLE IN RETENTION When asked about why employees leave, low salary comes out to be a common excuse. However, research has shown that people join companies, but leave because of what their managers¶ do or 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: y
Cr eating a Motivating Environment: Team leaders who create motivating environments are likely to keep their team members together for a longer period of time. Motivation does not necessarily have to come through fun events such as parties, celebrations, team outings etc. They can also come through serious events e.g. arranging a talk by the VP of Quality on career opportunities in the field of quality. Employees who look forward to these events and are likely to remain more engaged.
y
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.
y
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.
y
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.
y
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.
y
Focus on f utur e car eer: 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
.
CHAPTER 2 REVIEW OF LITERATURE
Objective of the study 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
Resear ch Design
Descriptive Design.
Resear ch Problem Scope of the study The scope of the study covers in depth, the employee retention practices, modules, formats being followed and is limited to the company Hcl and its employees.
Sour ces of data Methods of data collecti on
Communication, asking questions and receiving a response in person
Visiting the various organizations, libraries, internet and also preparation of the questionnaire with the help of the project guide.
Sample Size To understand the training and development scenario at Reliance Mobile and what the trainee really feels about the training they have undergone and further what kind of
training they look for. Do they really look for any kind of training or not? To study the above aspect we covered almost about
40
people from almost all the department at of the
company Reliance Mobile
Sample ar ea Statistical tools used for interpr etation and analysis
Primary data collected through questionnaires and informal interviews.
Secondary data collected through magazines, journals, websites, and other corporate publications
Limitations of the study
CHAPTER 4 INTERPRETATION AND ANALYSIS
Q1. I get the best possible work environment Response
No. Of Respondents
Percentage
Agree
9
65
Strongly Agree
2
14
Neutral
3
21
Disagree
0
0
Strongly Disagree
0
0
Total
14
100
Agr ee Strongly Agr ee
22%
Neutral
14%
64% Disagr ee Strongly Disagr ee
Interpretation:-
The above chart indicates that employees are satisfied with working environment provided by organization.
Q 2. I take pride in the company. Response
No. of respondents
Percentage
Agree
8
57
Strongly Agree
4
29
Neutral
2
14
Disagree
0
0
Strongly Disagree
0
0
Total
14
100
Agr ee
14%
Strongly Agr ee
29%
Neutral
57% Disagr ee Strongly Disagr ee
INTERPRETATION:The above chart indicates that the most of the employee feel pride to work in the company.
Q 3. My organization lives its corporate values. Response
No. of respondents
Percentage
Agree
5
36
Strongly Agree
2
14
Neutral
4
29
Disagree
2
14
Strongly Disagree
1
7
Total
14
100
7%
14%
Agr ee
36%
Strongly Agr ee Neutral
29%
Disagr ee
14%
Strongly Disagr ee
INTERPRETATION:50% people are in favor with above statement but 50% people have doubt about it.
Q 4. My organization provides employee appreciation program Response
No. of respondents
Percentage
Agree
3
21
Strongly Agree
2
14
Neutral
6
44
Disagree
3
21
Strongly Disagree
0
0
Total
14
100
Agr ee
21%
22%
Strongly Agr ee Neutral
14% Disagr ee
43% Strongly Disagr ee
INTERPRETATION:The above graph indicates that organization provides employee appreciation program but not for all employees.
Q 5. We celebrate personal events in the work place such as birthday. Response
No. of respondents
Percentage
Agree
5
36
Strongly Agree
8
57
Neutral
1
7
Disagree
0
0
Strongly Disagree
0
0
Total
14
100
7%
Agr ee 36%
Strongly Agr ee Neutral
57%
Disagr ee Strongly Disagr ee
INTERPRETATION:This graph indicates that organization fully motivate its employees by celebrating their birthday and other parties.
Q6 My organization provides training and development opportunities to the employees Response
No. of respondents
Percentage
Agree
5
36
Strongly Agree
2
14
Neutral
5
36
Disagree
2
14
Strongly Disagree
0
0
Total
14
100
Agr ee
14% 36%
Strongly Agr ee Neutral
36%
Disagr ee
14% Strongly Disagr ee
INTERPRETATION:The above graph indicates that organization provides training and development opportunities to the employees adequately. Moreover, it needs to give more focus this issue.
Q7. My organization has an effective mentoring or budding system?
Response
No. of respondents
Percentage
Agree
7
50
Strongly Agree
1
7
Neutral
5
36
Disagree
1
7
Strongly Disagree
0
0
Total
14
100
7%
Agr ee Strongly Agr ee 50%
36%
Neutral Disagr ee
7%
Strongly Disagr ee
INTERPRETATION:The above graph shows that organization has an effective mentoring or budding system
Q8. The compensation plans are managed fairly and equitably in the organization.
Response
No. of respondents
Percentage
Agree
4
29
Strongly Agree
0
0
Neutral
8
57
Disagree
0
0
Strongly Disagree
2
14
Total
14
100
Agr ee
14% 29%
Strongly Agr ee Neutral Disagr ee
57%
Strongly Disagr ee
INTERPRETATION:The above graph indicates that the organization does not much take care about the compensation plans for employees.
Q9. The organization offers profit sharing plans to the employees. Response
No. of respondents
Percentage
Agree
4
29`
Strongly Agree
0
0
Neutral
5
36
Disagree
2
14
Strongly Disagree
3
21
Total
14
100
21%
Agr ee
29%
Strongly Agr ee Neutral
14%
Disagr ee 36%
Strongly Disagr ee
INTERPRETATION:The above graph indicates that organization has not sufficient offers for profit sharing plans to the employees
Q10. Organization is able to retain employees: Response
No. of respondents
Percentage
Agree
8
58
Strongly Agree
2
14
Neutral
3
21
Disagree
1
7
Strongly Disagree
0
0
Total
14
100
7%
Agr ee Strongly Agr ee
22%
Neutral 57%
14%
Disagr ee Strongly Disagr ee
INTERPRETATION:The above graph indicates that employees are fully preferred to work in that organization and also company has full ability to retain the employees.
Q11. Manager building personal bonds with their subordinates. Response
No. of respondents
Percentage
Agree
5
35
Strongly Agree
5
36
Neutral
4
29
Disagree
0
0
Strongly Disagree
0
0
Total
14
100
Agr ee
28%
36%
Strongly Agr ee Neutral Disagr ee
36%
Strongly Disagr ee
INTERPRETATION:The above Chart indicates full fledge favor of the manager of company to build personal bonds with their subordinates
Q12. Reward systems exist in organization.
Response
No. of respondents
Percentage
Agree
6
44
Strongly Agree
1
7
Neutral
3
21
Disagree
1
7
Strongly Disagree
3
21
Total
14
100
Agr ee
21% 43% 7%
Strongly Agr ee Neutral Disagr ee
22% 7%
Strongly Disagr ee
INTERPRETATION:The above Chart indicates that company preferred to give reward to deserving candidates, but it should give more concentration to reward system because it is the best source of motivating employees
Q13. Company has exciting challenges.
Response
No. of respondents
Percentage
Agree
5
36
Strongly Agree
4
29
Neutral
1
7
Disagree
2
14
Strongly Disagree
2
14
Total
14
100
Agr ee
14% 36%
Strongly Agr ee
14% Neutral 7%
Disagr ee
29%
Strongly Disagr ee
INTERPRETATION:The above Chart indicates that company need to be more challenging to their competitors in order to get the higher rank in the corporate.
Q14. Employee has Freedom and autonomy Response
No. of respondents
Percentage
Agree
6
43
Strongly Agree
3
21
Neutral
4
29
Disagree
0
0
Strongly Disagree
1
7
Total
14
100
7%
Agr ee
43%
29%
Strongly Agr ee Neutral Disagr ee
21%
Strongly Disagr ee
INTERPRETATION:The above Chart indicates that company gives the freedom to the e mployees, and employee has right of self-sufficiency to take decisions.
Q15. Job has exciting challenges.
Response
No. of respondents
Percentage
Agree
4
29
Strongly Agree
4
29
Neutral
3
21
Disagree
1
7
Strongly Disagree
2
14
Total
14
100
Agr ee
14% 7%
29%
Strongly Agr ee Neutral
21%
Disagr ee
29% Strongly Disagr ee
INTERPRETATION:The above Chart indicates the different opinions; it may be beca use of the different job responsibility of the different employees. But overall job has exciting challenge with in organization
Q16. Manager clearly defines job responsibilities.
Response
No. of respondents
Percentage
Agree
4
28
Strongly Agree
4
29
Neutral
4
29
Disagree
1
7
Strongly Disagree
1
7
Total
14
100
7%
Agr ee
7%
28%
Strongly Agr ee Neutral
29%
Disagr ee
29%
Strongly Disagr ee
INTERPRETATION:The above Chart indicates that manager is fully able to describe the responsibility of job to employees. Manager himself is pretended to be fully responsible towards his employees and job.
Q17. Manager encourages for high achievement.
Response
No. of respondents
Percentage
Agree
5
36
Strongly Agree
7
50
Neutral
2
14
Disagree
0
0
Strongly Disagree
0
0
Total
14
100
Agr ee
14% 36%
Strongly Agr ee Neutral
50%
Disagr ee Strongly Disagr ee
INTERPRETATION:The above Chart is fully favorable to the manager to give confidence and give full support to his employees to achieve the goals of companies. This the good sign for the company¶s growth.
Q18. Manager gets support and teamwork from other areas.
Response
No. of respondents
Percentage
Agree
5
37
Strongly Agree
2
14
Neutral
2
14
Disagree
3
21
Strongly Disagree
2
14
Total
14
100
Agr ee
14% 36%
Strongly Agr ee Neutral
22%
Disagr ee
14%
14%
Strongly Disagr ee
INTERPRETATION:The above Chart indicates that manager does not much preferred to get support from other areas. He need to give more focus on this area.
Q19. Manager provides continuous feedback.
Response
No. of respondents
Percentage
Agree
8
58
Strongly Agree
2
14
Neutral
2
14
Disagree
1
7
Strongly Disagree
1
7
Total
14
100
7%
Agr ee
7%
Strongly Agr ee
14% Neutral 57%
15%
Disagr ee Strongly Disagr ee
INTERPRETATION:Feedback is mandatory to control over the retention rate of company. Manager focus on continuous feedback, that¶s why he able to retain his employees.
Q20. Organization spends more time and money on retention program rather than on recruitment.
Response
No. of respondents
Percentage
Agree
5
36
Strongly Agree
1
7
Neutral
4
29
Disagree
2
14
Strongly Disagree
2
14
Total
14
100
Agr ee
14% 36%
14%
Strongly Agr ee Neutral Disagr ee
29%
7%
Strongly Disagr ee
INTERPRETATION:To control the retention rate would be more profitable rather than to spend money on new employee. Company gives more focus on the retention rate than the recruitment of new employee.
CHAPTER 5 FINDINGS OF THE
STUDY
CHAPTER 6
SUGGESTIONS AND RECOMMENDATIONS
To control the retention rate would be more profitable for the organization. Hcl almost fulfill the issue of employee retention but there is something to improve as discuss above result. ³Show me the money´ is not the singular solution. While bonuses, stock-options, and flextime are appreciated, what employees really want is some assurance of continued employability. Here are the most popular worker retention strategies:
78% conferences and seminars 67% tuition reimbursement 67% managerial training 58% pay for performance 57% flextime 57% interpersonal skills training 55% technical training
CHAPTER 7 CONCLUSION
REFERENCES
