SUMMER TRAINING PROJECT REPORT ON
RETENTION MANAGEMENT SYSTEM WITH RESPECT TO
Submitted in partial fulfillment of the requirements for the degree of MASTER OF O F BUSINESS ADMINISTRATION ADMINISTRATION SUBMITTED TO Department of Management Studies JSS Academy of Technical Education, Noida - 201301 SUBMITTED BY NEHA SHAKYA MBA (2011-13) Roll No. 1101970025
JSS ACADEMY OF TECHNICAL EDUCATION NOIDA – 201301 MAHAMAYA TECHNICAL UNIVERSITY, NOIDA (2011-2013)
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PLAGIARISM DECLARATION CERTIFICATE
To the best best of my knowledge knowledge and and belief, belief,
this Summer Summer trainin training g Project Report Report is is my
own work, all sources have been properly acknowledged, and the report contains no plagiarism. I have not previously submitted this work or any version in full or part of it, for assessment in any other university or institution for any degree or diploma program. I acknowledge that this Summer Training Project Report may be transferred and stored in a database for the purposes of data-matching to help detect plagiarism.
Student Name
NEHA SHAKYA
16.11.2012
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Company’s Certificate
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JSS MAHAVIDYAPEETHA JSS ACADEMY OF TECHNICAL EDUCATION, NOIDA DEPARTMENT OF MANAGEMENT STUDIES
CERTIFICATE This is to certify that Ms. Neha Shakya has successful successfully ly completed completed
the Summer
Training Project Report titled 'Retention Management System with respect to Tech from 20.06.20 partial al fulfi fulfillm llment ent of the Mahindr Mahindra a Ltd.' from 20.06.2012 12 to 05.08.20 05.08.2012, 12, as the parti requirement for the award of degree of Masters of Business Administration Administration (M.B.A.) by Mahamaya Technical University during batch (Batch year).
Dr. M.K. Sharma Head, Department of Management Studies, JSSATE, Noida
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ACKNOWLEDGEMENT
The authorship of a monograph is usually attributed to one person but a report on the Internship or a project work like this one is a joint affair. I am indebted to all who have been of great help to me in doing and writing this project report. Firstly, I am thankful and express my gratitude to Mr. B.K. Tyagi, Senior Manager (HR), (HR),
Tech Tech Mahind Mahindra ra Ltd. for his valuabl valuablee guidan guidance ce and support support at all time time and
provided me the best opportunity to completed my summer training project with an esteemed organization. I am also grateful and extend my thanks to _______________ ______________________ _______ (Faculty Guide) for his able guidance and support at all time. Special regard and greatest appreciation is reserved for all the Executives and Employees of Tech Mahindra Ltd. for their valuable guidance and support at all time. I am pleased to say that the whole report is just the presentation of the facts that have been found during the projects through different sources and its each sentence is an exact representation of the information obtained and the analysis thereof. I hope that I have manifested my sincere attempts to represent all the information and other things to the best of ability.
NEHA SHAKYA MBA (2011-13) Roll No. 1101970025
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TABLE OF CONTENTS •
PREFACE
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INTRODUCTION
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COMPANY PROFILE
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LITERATURE REVIEW
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OBJECTIVES OF THE STUDY
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RESEARCH METHODOLOGY
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GRAPHICAL DATA INTERPRETATIONS
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FINDINGS
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RECOMMENDATIONS
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SUGGESTIONS
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CONCLUSIONS
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BIBLIOGRAPHY
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QUESTIONNAIRE
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PREFACE Tech Mahindra is a global systems integrator and business transformation consulting firm firm focuse focused d on the commun communica icatio tions ns indust industry. ry. With With the conver convergen gence ce of media media and tele teleco com, m, the the chang changin ing g land landsc scap apee of the the tele telecom com indus industr try y is beco becomi ming ng extre extreme mely ly competitive. Employee retention at Tech Mahindra 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 compensati compensation. on. When the difference difference becomes too great and another another opportunity 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
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healthy work environment, the company is benefited with a stronger, reliable work-force harboring bright new ideas for its growth.
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INTRODUCTION As per philos philosophi ophical cally, ly, employ employee ee retent retention ion is import important ant;; in almost almost all cases, cases, it is senseless to allow good people to leave your organization. When they leave, they take with them intellectual property, relationships, investments (in both time and money), an occasional employee or two, and a chunk of your future. Employee Retention Strategies helps organizations provide effective employee communication to improve commitment and enhance enhance workfo workforce rce sup suppor portt for key corpor corporate ate initi initiati atives ves.. We also also provid providee full full suppor sup portt for your market marketing ing-co -commu mmunic nicati ation on effort effortss by helpin helping g you build build custom customer er loyalt loyalty y by distin distingui guishi shing ng and pos positi itioni oning ng your organi organizati zation’ on’ss unique unique produc products ts and services in today’s crowded marketplace. HUMAN RESOURCE MANAGEMENT
HRM is the strat strategic egic and coheren coherentt approach approach to the of management management an organizatio organization's n's mostt valued mos valued assets assets - the people people workin working g there there who indivi individual dually ly and collec collectiv tively ely contri contribut butee to the achiev achieveme ement nt of the object objective ivess of the bus busine iness. ss. The terms terms "human "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce.
The Human Resources Management (HRM) function includes a variety of activities, and key key among among them them is deci decidi ding ng what what staf staffi fing ng need needss you have and whet whethe herr to use use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and 9
ensuring ensuring your personnel and management management practices practices conform to various various regulations regulations.. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise over overal all. l. HRM HRM is also also seen seen by many many to have have a key role role in risk risk redu reduct ctio ion n with within in organizatio organizations. ns. There is a long-standi long-standing ng argument argument about where HR-relate HR-related d functions functions should be organized into large organizations, eg, "should HR be in the Organization Development department or the other way around?"
The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, trai traini ning ng and and help helpin ing g to manag managee peopl peoplee so that that peopl peoplee and and the the orga organi niza zati tion on are are performing at maximum capability in a highly fulfilling fulfilling manner.
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COMPANY PROFILE Tech Mahindra is a global systems integrator and business transformation consulting firm firm focuse focused d on the commun communica icatio tions ns indust industry. ry. With With the conver convergen gence ce of media media and tele teleco com, m, the the chang changin ing g land landsc scap apee of the the tele telecom com indus industr try y is beco becomi ming ng extre extreme mely ly compet competiti itive. ve. As compani companies es rapidl rapidly y strive strive to gain gain a compet competiti itive ve advant advantage age,, Tech Tech Mahindra helps companies innovate and transform by leveraging its unique insights, differentiated services and flexible partnering models. This has helped our customers reduce operating costs and generate new revenue streams. Recognizing that margins from connectivity are rapidly falling and that future growth in revenues and margins will only only come come from from new applica applicatio tions, ns, conten contentt and servic services, es, operato operators rs today today are bus busy y addressing addressing business business opportuniti opportunities es revolving revolving around Commerce, Commerce, Content, Content, Convergence Convergence and Customer Experience to gain a sustainable Competitive Advantage. For over two decades decades,, Tech Tech Mahind Mahindra ra has been the chosen chosen transf transform ormati ation on partne partnerr for wire wire line, line, wireless and broadband operators in Europe, Asia-Pacific and North America. Majority owned by Mahindra & Mahindra, one of the Top 10 industrial houses in India, in partnership with British Telecommunications plc (BT), world’s leading communications service service provider, provider, Tech Mahindra Mahindra has grown rapidly to become the 5th largest software software exporter in India and the first largest telecom software provider from India.
The telecom software provided by Tech Mahindra can be broadly classified into two forms: •
Telecom Service Provider
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Telecom Equipment Manufacturer
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The software industry has made a steady growth in the past 2 – 3 years with the top-tire competitors growing at the rate of 35% annually. The IT sector of Tech Mahindra is show showin ing g an impr impres essi sive ve grow growth th.. Th Thee gener general al aver averag agee reven revenue ue of the the comp compan any y is estimated to be Rs 12 billion (US $268) over the last six years. Further, the latest financial estimate of the company has already crossed Rs 29 billion.
For over two decades, Tech Mahindra has been the chosen transformation partner for wireline, wireless and broadband operators in Europe, Asia-Pacific and North America. Majority owned by Mahindra & Mahindra, one of the Top 10 industrial houses in India, in
part partne ners rshi hip p
with with
Brit Britis ish h
Tele Teleco comm mmun unic icat atio ions ns
plc plc
(BT) (BT),,
worl world’ d’ss
lead leadin ing g
communications service provider, Tech Mahindra has grown rapidly to become the 5th largest software exporter in India and the first largest telecom software provider from India.
Over 25,000 professionals service clients across the telecom eco-system, from our global network of development centres and sales offices across Americas, Europe, Middle-east, Africa and Asia-Pacific. Committed to quality, Tech Mahindra adds value to client businesses through well-established methodologies, tools and techniques backed by its stringent quality processes. Tech Mahindra is ISO 9001:2000 certified and is assessed at SEI-CMMI Level 5. Tech Mahindra has also been awarded the ISO 20000-1 (IT Service Management standard) and ISO 27001 (Security Management standard) certification for its development centers across India and UK. Tech Mahindra is certified at PCMM Level 5 for its people-care practices and is the third company in the world to have been appraised for SSE-CMM Level 3.
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MANAGEMENT TEAM The management team of Tech Mahindra are:
Anand Mahindra, Chairman of Tech Mahindra Anand Mahindra (Born on 1 May, 1955) is the Vice Chairman and Managing Director
of one of India’s largest companies, Mahindra & Mahindra. He now resides in his home town Mumbai. Mahindra returned to India and joined Mahindra Ugine Steel Company (MUSCO) where he became President and Deputy Managing Director in 1989. During this time he initiated the Mahindra Group’s diversification into the new business areas of real estate development and hospitality. In 1991, he was appointed Deputy MD of Mahindra & Mahindra Ltd. He became the Managing Director in 1997 and took on the additi additional onal respon responsib sibili ility ty of Vice Vice Chairm Chairman an in 2003. 2003. Under Under Anand Anand Mahind Mahindra, ra, the company launched India’s best loved SUV, the Scorpio, which today has gone global. He has recently been ranked amongst the most influential men & women in Mumbai by Daily News and Analysis. Mahindra is the co-founder of the Harvard Business School Asso As soci ciat atio ion n of Indi India, a, an asso associ ciat atio ion n dedic dedicat ated ed to the the prom promot otio ion n of prof profes essi siona onall management management in India. The association association has grown substantial substantially ly over the years. He is the co-chair at the World Economic Forum at Davos. Mahindra is a Director of The National Stock Exchange of India Limited appointed under the "Public Representatives" category. He is the Chairman of National Safety Council of India. He is the Co-Chairman of the International Council of the Asia Society, New York. 13
Vineet Nayyar, Vice Chairman
An accompl accomplish ished ed leader leader,, Sir Vineet Vineet Nayyar Nayyar has led severa severall organi organizat zation ionss across across indust industri ries, es, creati creating ng high high perfor performan mance ce teams teams and succes successfu sfull bus busine inesse sses. s. In a career career spanning spanning over 40 years, he has worked with the Government, Government, internatio international nal multilate multilateral ral agencies agencies and the corporate corporate sector (both public public and private). Vineet holds holds a Master’s Master’s degree in Development Economics from Williams College, Massachusetts.
Sonjoy Anand, Chief Financial Officer
Sonjoy Anand is responsible for the Finance, Legal and Secretarial functions at Tech Mahindra. He has been Chief Executive for a portfolio of businesses with ICI. Most recent recently, ly, he was the Direct Director, or, Financ Financee for a global global bus busine iness ss with with a multi multinat nation ional al corporation based in the UK with additional responsibility for the Procurement and Info Inform rmat atio ion n Tech Techno nolo logy gy func functi tion ons. s. Sonjo Sonjoy y has has exten extensi sive ve exper experie ienc ncee cover coverin ing g acquisitio acquisitions, ns, divestments divestments and formation formation of joint ventures. ventures. A graduate in Economics Economics (Hons.) and a qualified Chartered Accountant, Sonjoy has approximately 25 years of experience in Finance and General Management. 14
Sujit Baksi, President – Corporate Affairs
Sujit has over 30 years of experience in the areas of people management, operations management and corporate strategy. At Tech Mahindra, Sujit leads the HR, Resource Manage Managemen mentt Group, Group, Infras Infrastru tructu cture re functi functions ons includ including ing Techni Technical cal Infras Infrastr truct ucture ure Mana Manage geme ment nt,, Trai Traini ning ng (Tec (Techn hnic ical al & Beha Behavi vior oral al), ), Mana Manage ged d Serv Servic ices es and and the the Administrative functions. functions. Sujit is a graduate from Presidency College, Kolkata having comple completed ted his pos postt gradua graduate te specia specializ lizati ation on in Person Personnel nel Manage Managemen mentt from from XLRI, XLRI, Jamshedpur,
Sanjay Kalra, CEO
Sanjay Kalra is the CEO of Tech Mahindra. In his earlier role at Tech Mahindra he spearheaded the BT relationship and business transformation services. Prior to joining Tech Mahindra, Sanjay was the Chief Executive Officer of DSL Software (a joint venture between HCL and Deutsche Bank), which is focused on IT and BPO solutions to Capital Markets. He has also served as President of HCL Technologies Europe and was respon responsib sible le for the creati creation on and incuba incubatio tion n of Cisco's Cisco's first first outsou outsource rced d R&D center center outside North America with around 1000 engineers. 15
VISION & MISSION OF TECH MAHINDRA LTD.
Vision: To be the leading global software solution provider to the telecom industry.
Mission: To be the global leader in Outsourcing Services to the Telecom industry,
building on our technologies, competencies and customer interests, and creating value for our shareholders and customers.
Tech Mahind Mahindra ra is focuse focused d on creati creating ng The Values that drives drives Tec Tech h Mahindra Mahindra:: Tech sustainable value growth through innovative solutions and unique partnerships. Our values are at the heart of our business reputation and are essential to our continued succ succes ess. s. We fost foster er an envi enviro ronm nmen entt to inst instil il thes thesee value valuess in every every face facett of our our organization.
Customer Customer first, first, Good corporate corporate citizenshi citizenship, p, Profession Professionalis alism, m, Commitment Commitment to
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quality, Dignity of the individual
Services offered by Tech Mahindra
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Business Consulting, Systems Integration, Application Support and Maintenance Managed Services
QUALITY STANDARDS FOLLOWED BY TECH MAHINDRA As a part of its mature quality processes, Tech Mahindra uses well defined process
measur measureme ements nts to mon monito itorr the quality quality of soluti solutions ons delive delivered red and ensure ensure contin continuous uous improvement. With a strong focus on process management, Tech Mahindra’s Business Management System (BMS) integrates business needs and industry best practices to deliver services that constantly improve: •
Customer Satisfaction 16
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Productivity and Cycle-Time
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Quality of Solutions and Services
Integration of Initiatives
Tech Mahindra's BMS is designed to develop solutions that meet client specifications in accordance with statutory and other industry-wide standards. Tech Mahindra’s quality leadership conforms to world-class quality standards and models. Tech Mahindra is ISO 9001:2000 certified and is assessed at SEI-CMMI Level 5. Tech Mahindra has also been awarded the ISO 20000-1 (IT Service Management standard) and ISO 27001 (Security Management standard) certification for its development centres across India and UK. Tech Mahindra is certified at P-CMM Level 5 for its people-care practices and is the third company in the world to have been appraised for SSE-CMM Level 3.
Tech Mahindra's Service Delivery Framework - mASTER™
Based on proven methodologies and industry best practices, Tech Mahindra has defined a holistic transition process framework - mASTER™ - for effective service delivery to customers. mASTER™ offers a methodology for planning, managing, delivering and operating complex programs through five defined phases as depicted below: The mASTER™ methodology covers a broad range of activities that are structured around around quality quality gates gates and delive deliverab rables les,, thus thus ensuri ensuring ng a predic predictab table le and measur measurabl ablee business outcome and consistent quality of deliverables.
MILESTONES •
1986 - Incorporation in India
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1987 - Commencement of Business 17
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1993 - Incorporation of MBT International Inc., the first overseas subsidiary
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1994 - Awarded the ISO 9001 9 001 certification by BVQI
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1995 - Established the UK branch office
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2001 - Incorporated MBT GmbH, Germany incorporated. Re-certified to ISO 9001:1994 by BVQI
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2002 - Assessed at Level 5 of SEI CMM by KPMG. Incorporated MBT Software Technologies. Limited, Singapore
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2003 - Re-certified to ISO 9001:2000 by b y RWTUV
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2006 - Name changed to Tech Mahindra Limited. Assessed at Level 5 of SEI People-CMM (P-CMM) by QAI India. Raised Rs4.65 billion ($100 million) from a hugely successful IPO to build a new facility in Pune, to house about 9,000 staff. Formed a JV with Motorola Inc. under the name Canvas.
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2007 - Acquired policy Networks Private Limited. Launched the Tech Mahindra Foundation to address the needs of the underprivileged in our society, especially children.
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2009 -Tech Mahindra wins bid for Satyam. Tech Mahindra has won the bid for Satyam Computer Services.
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AWARDS & RECOGNITIONS RECOGNITIONS
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Ranked #1 in Telecom Software category by Voice & Data, 2009 (V&D100 Ranking)
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Ranked 11th Largest TOMS vendor by Gartner in "Market Share: Telecoms Operations Management Systems – Worldwide, 2006-2008" May 2009
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In the Leaders Category in 'The 2009 Global Outsourcing 100' (IAOP's Annual Listing of the World's Best Outsourcing Service Providers)
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Deloitte Technology Fast 500 APAC 2008
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Deloitte Technology Fast 50 India 2008
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Award for Excellence in Training (Employer Branding Awards 2008-2009) 200 8-2009)
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'Best Overall Recruiting & Staffing Organization of the Year Award' (RASBIC Awards 2009)
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Award for Managing Health at Work (Employer Branding Awards Awa rds 2008-2009)
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Award for Excellence in Training (Employer Branding Awards 2008-2009) 200 8-2009)
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BusinessWeek Award for Asia’s Best Performing Companies, 2008
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Ranked 2nd in Telecom Software providers of India by Voice & Data, 2008 (V&D100 Ranking)
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“Growth Excellence Award” by Frost & Sullivan, 2008
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6th Largest Software Services Company in India (NASSCOM 2008)
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10th Largest IT-BPO Employers, FY 07-08 (NASSCOM 2008)
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Award for “Best Start-up Company” at Mobile Content Awards & Conference 2008 (MCA08) to CanvasM 19
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Award in “Largest Revenue Category” of “IT and ITeS (excluding Hardware) Sector” by D&B – ECGC Indian Exporters Excellence Awards, 2008
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Ranked 12th Largest TOMS vendor by Gartner in "Market Share: Telecoms Operations Management Systems – Worldwide, 2006-2007" April 2008
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"Best Billing Solution" Category at "Billing and OSS World (B/OSS) Excellence Awards 2008", April 2008
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The Brand Leadership Award by the Asia Brand Congress, 2008
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'Best Overall Recruiting & Staffing Organization of the Year Award' (RASBIC Awards 2008)
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In the Leaders Category in 'The 2008 Global Outsourcing 100' (IAOP's Annual Listing of the World's Best Outsourcing Service Providers)
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'Organization with the most innovative HR practices Award' (Asia Pacific HRM Global HR excellence Award 2007) 3rd largest BSS Systems Integrator and 5th larges largestt BSS Vendor Vendor (Gartn (Gartnerer-Dat Dataqu aquest est,, World World Wide Wide Analys Analysis is 200 2000-2 0-2006, 006, published in 2007)
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Produc Productt Innova Innovatio tion n Award Award for Enterp Enterpris risee DRM (Frost (Frost & Sulliv Sullivan an Asia Asia ICT Awards 2007)
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Vertical Growth Leadership in Telecom Software (Frost & Sullivan Asia ICT Awards 2007)
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The Elite member of the Deloitte Technology Fast 50 India (2007)
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The Brand Leadership Award by the Asia Brand Congress, 2007
IT SERVICES AND TELECOM SOLUTIONS 20
Tech Mahindra is the global leader in delivering the end to end IT services and solutions The company has 15000 professionals’ service clients in various telecom segments, from various offshore development centers including 7 cities in India and UK and 13 sales centers in Americas, Europe and Asia-Pacific. The compan company y integr integrate atess dom domain ain expert expertise ise in OSS and Busine Business ss Support Support System Systemss systems, intelligent leadership and a global workforce advantage to deliver services. The company has service premium telecom companies worldwide. IT provides a wide variety of services ranging from IT strategy and consulting to system integration, design, application development, implementation, maintenance and product engineering. It has a rich telecom heritage, dedicated to quality; Tech Mahindra adds value to client business process by well-established methodologies, tools and techniques backed by Quality. Tech Mahindra is ISO 9001:2000 certified and is also a SEI-CMMi S EI-CMMi Level Level 5 organi organizat zation ion.. Tech Tech Mahind Mahindra ra is also also BS7799 BS7799 certif certified ied at all develo developme pment nt centers. Majority owned by Mahindra & Mahindra, India’s fifth largest commercial group, in partnership with BT Plc (BT), Europe’s second largest telecom service provider, It has grown in a rapid way to attain the position the 8th largest software exporter in India Vision- To be the leading global software solutions provider to the telecom industry. Mission Statement- To be the global leader in outsourcing services, To the telecom
industry, Building on our technologies and competencies, And customer interests, And creating value for our share holders and customers
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THE VALUE THAT DRIVES TECH MAHINDRA
Tech mahindra is focussed on creating remarkable value growth through innovative /creative solutions and partnerships. Their values are at the heart of their business /brand name and are essential to their sustained success they foster an environment to instill these values in every aspect of their organization 1. Corp Corpor orat atee cit citiz izen ensh ship ip 2. Prof Profes essi sion onal al appr approa oach ch 3. Custom Customer er satisf satisfact action ion first first 4. Cust Custom omer er cent centri rici city ty 5. Dedi Dedica cati tion on towar towards ds qual qualit ity y 6. The integr integrity ity of indivi individua duall Infrastructure
Tech mahindra has seven software development centers, one in United Kingdom and six in India (mumbai. Chennai, pune, Bangalore, kolkata, noida). 13 regional offices spread over UK, USA, Germany etc. Achievements
1. It is ranke ranked d by NASCOM NASCOMM M as the eight eight larg larges estt IT servi service cess in contex contextt of export export revenue. 2. The relations relationship hip with BT BT has given given an edge, now they they have an establis established hed presence presence in the European market, they have grown in North American market with clients such as AT&T, and they have also come into picture in south Asian countries with clients in countries like Thailand, Malaysia and India.
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3. Their revenue revenue grew grew at the annual annual growth growth rate rate of 26% and their their no of employ employees ees grew at an annual growth rate of 24% in 2004-2006. SERVICES
service that enables enables client client to identify, identify, develop and Solution integration - This is a kind service implement the most effective solutions to their change needs/requirements. There is requirement of business processes across organization’s entire value chain of customers, partners, suppliers and employees. Solution integration integration is crucial in different domains of organization organization due to different different factors:
1. Multi Multi - tasking tasking system systemss for for various various domains. domains. 2. Post mergers mergers acquisitio acquisitions, ns, process process & networ networks ks need integra integration. tion. 3. New product product implemen implementat tation ionss requir requiree integr integrati ation/ on/uni unific ficati ation on with with other other exist existing ing systems. 4. Increa Increased sed busi busines nesss value value is demande demanded d 5. Invest Investmen mentt maximi maximizat zation ion is nece necessa ssary ry 6. There There is a requir requireme ement nt to integrat integratee with with bus busine iness ss partners partners,, sup suppli pliers ers,, custom customers ers to decrease inventory. 7. There is is a need need to decreas decreasee manual manual interact interactions/t ions/transa ransactions ctions.. TECH MAHINDRA ADVANTAGE
1. World leading track record in telecom industry. 2. Application outsourcing experience is of two decades now 3. The company has flexible procedures 23
4. The focus focus is on SLA’S SLA’S that improves improves efficiency efficiency.. APPLICATION DEVELOPMENT AND MANAGEMENT Consulting
The organization offers complete range of consulting services, which is used to analyze client’s business need to implement software systems. The constancy is proved in the field of re – engineering solutions, strategic control. The strate strategic gic allian alliance ce has given given edge edge to market market penetra penetratio tion n and compet competiti itiven veness ess in emerging markets. This is also effective in product evaluation. Global Managed Services
The key to success in current scenario is focus on core competency. Business today faces increased network complications, varied bandwidth needs, and decreased budgets and it is found that traditional solutions to these challenges causes distraction from their core business strategies. Organi Organizati zations ons are theref therefore ore lookin looking g at outsou outsourci rcing ng servic services es to a managed managed servic servicee provider. Tech Mahindra’s managed services provide an opportunity to customers to outsource business and operations process, high standard of quality, accountability is assured assured .it is cost effective effective and the risk is low. Global managed services; services; A specialized specialized team is created which has the expertise to manage manag e an enabling infrastructure and process. BPO Services
This is a logical extension of IT services, tech Mahindra provides an e2e package to its telecom clients, The global facilities in context to outsourcing is provided.
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HUMAN RESOURCES PROCESS AT TECHM •
Personal administration (PA)
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Personal development (PD)
Implementation process
The projects which are undertaken by tech Mahindra are done in following phases: Scoping
What needs implemented, which sub modules are required be implemented, some clients may not require finance management, example, marketing people along with project manager do it.
BPO (BUSINESS PROCESS OWNER) is the clients employee who has knowledge of the client business processes probably a middle management executive, it could more than one, collection of all the ISO documents, if client is ISO certified, reports and forms at this stage and analyze how and when the reports /forms are generated, What is the source of data.there is level –2 training is done for BPO so he is made aware of all the requi require red d tran transa sact ctio ions ns in SAP. SAP. Afte Afterr its its comp comple leti tion on BPO star starts ts lear learni ning ng with with the the consultants, help more about SAP. This is crucial because if there is a miss on any transactions the BPO may neglect some of business processes which may arise later.it is a good practice to ask the BPO to construct flow charts to understand business process.
The processes are mapped to SAP. Some processes are not sure whether they are present in SAP or not we try to do a configuration of those processes, and along with BPO, BPO involvement is needed as he be able to tell his needs better once the business modeling is 25
accomplished, we will also be made aware the gaps between as – is and to – be, here decisions has to be made as to whether an ABAP development/system modifications is needed or not and so on, the BPO involvement should be involved and document everything.
Business blue print
Here the as-is and to-be and gap analysis is understood. This is the document that is used to perform the integration in the realization phase.
Realization phase
The configuration takes place in the development server (there are three domains – development, quality, production. The master data format is being decided upon, so that BPO is able to collect the master data. ABAP specifications are delivered to forms reports systems modifications, etc.
Unit testing
BPO and few key users are involved to test the configuration in the module .It is best to test the BDCs that you need for uploading information at this stage, so that there is realistic data and BDCs are tested.
Integration testing
After unit testing is over then configuration is moved to the quality sever, where testing for all the functions/domains is done byBPOs and end user, this helps to check if any issue’s are there in context to integration between various functions, once it is approved from the QA sever config is moved to the production server.
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VALUABLE CLIENTS OF TECHM Major clients of Tech Mahindra in ERP are:
1. Brit Britis ish h tele teleco com m 2. AT&T 3. Motorola 4. Mahi Mahind ndra ra & Mah Mahin indr draa 5. MEA Bangk ngkok Clients Testimonials
“It has shown/maintained a very important role in BT’s strategy and proving to be stronger partner. India is a very important market for BT, Business is growing at fast pace and I am proud to be a part of tech mahindra’s second growth phase here in Asia pacific”
BT GROUP
Taking TMF Catalyst initiative, Tech Mahindra studied our "As Is" processes to identify and analyze the Gaps by answering questions like, what does eTOM mean to these processes, where can we find these processes in the eTOM mapping, etc? The 'To Be' processes were built up by using the eTOM business process framework. The credit goes to Tech Mahindra for the excellent support and for the good teamwork. We will always look forward to work with Tech Mahindra.”
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LITERATURE REVIEW Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practi practices ces in place place that that address address their their divers diversee needs. needs. A strong strong retent retention ion strate strategy gy becomes a powerful recruitment tool. Retention of key employees is critical to the longterm health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge knowledge and learning. Employee Employee retention retention matters as organization organizational al issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organ organiz izat atio ion. n. Vari Various ous esti estima mate tess sugge suggest st that that losi losing ng a midd middle le mana manage gerr in mo most st organizations costs up to five times times of his salary. Intelligent employers always always realise the importance of retaining the best talent. Retaining talent has never been so important in the Indian scenario; however, things have changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the business, or even for the second or the third best. Retention of key employees and treating attrition trou troubl bles es has neve neverr been been so impor importa tant nt to comp compan anie ies. s. In an inte intens nsel ely y compet competit itiv ivee environment, where HR managers are poaching from each other, organisations can either hold on to their employees tight or lose them to competition. For gone are the days,
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when employees would stick to an employer for years for want of a better choice. Now, opportunities abound.
It is a fact that, retention of key employees is critical to the long-term health and success of any organisation. The performance of employees is often linked directly to quality work, customer satisfaction, and increased product sales and even to the image of a compan company. y. Wherea Whereass the same same is often often indir indirect ectly ly linked linked to, satisf satisfied ied collea colleague guess and report reporting ing staff, staff, effect effective ive succes successio sion n planni planning ng and deeply deeply embedde embedded d organi organisat sation ional al knowledge and learning. Empl Em ploy oyee ee rete retent ntio ion n matt matter ers, s, as, as, organ organis isat atio iona nall issu issues es such such as trai traini ning ng time time and and investment, costly candidate search etc., are involved. Hence, failing to retain a key employee is a costly proposition for any organisation. Various estimates suggest that losing a middle manager in most organisations, translates to a loss of up to five times his salary. This might be worse for BPO companies where fresh talent is intensively trained and inducted and then further groomed to the successive stages. In this scenario, the loss of a middle manager can often often prove dear. In fact, some reports reports suggest suggest that attrition attrition levels in IT companies are as high as 40 per cent. The only way out is to develop appropriate retention strategies. Though BPO industry shoots ahead at 40 to 50 per cent a year, it is now losing 35 to 40 per cent of its 350,000-odd employees as well.
In India there are few sectors where the attrition level is much larger compared to other sectors. For example: IT sector and BPO. Where as there are organizations like Air India, HAL, DRDO, BARC where the attrition is nearly 5% or less than that Employee
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Retention Strategies helps organizations provide effective employee communication to improve commitment and enhance workforce support for key corporate initiatives.
“Employee retention is a process in which the employees are encouraged to remain in the organization for the maximum period of time.”
Employee Retention involves taking measures to encourage competent employee to remain in the organization for the maximum period of time. Corporate are facing a lot problem 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 is 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 reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becomin becoming g aware aware of these these reason reasonss and adoptin adopting g many many strate strategie giess for employ employee ee retention. There are various HR issues the a corporate deals:
1. EM EMPL PLOY OYEE EE TUR TURNO NOVE VER R 2. ATTRITION These basic needs other than routine and future HR tasks are to be taken care of on Priority before it becomes late.
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WHY RETENTION?
Key employee retention is critical to the long term health and success of your business. Managers readily agree that retaining your best employees ensures customer satisfaction, product sales, satisfied co-workers and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning employee retention matters. Organizational issues such as training time and investment; lost knowledge; mourning, insecure co-workers and a costly candidate search aside, failing to retain a key employee is costly. Various estimates suggest that losing a middle manager costs an organization up to 100 percent of his salary. The loss of a senior executive is even ev en more costly. Employee retention is one of the primary measures of the health of the organization. Losing critical staff members means other people in the departments are looking as well. Exit interviews with departing employees provide valuable information that can used to retain remaining staff. WHY PEOPLE LEAVE THEIR JOB ?
With retention being such a high priority, why are people leaving organizations? Some literature suggests that people leave their jobs for a wide v ariety of reasons, including: 1. Unmet expectations 2. Inappropriate fit for the role 3. Lack of fit with company culture 4. Lack of sufficient opportunities for growth and advancement advance ment 5. Inadequate recognition and appreciation 6. Problems with a manager or supervisor 7. Dissatisfaction with compensation
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8. Stress 9. Lack of work/life balance 10. Lack of confidence in the company and/or leadership RETENTION INVOLVES FIVE MAJOR THINGS:
O Compensation O Environment O Growth O Relationship O Support COMPENSATION
Compens Compensati ation on consti constitut tutes es the larges largestt part part of the employ employee ee retent retention ion proces process. s. The employ employees ees always always have high high expect expectati ations ons regard regarding ing their their compens compensati ation on packag packages. es. 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
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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. Longterm 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 (Emplo (Employee yee Provid Provident ent Fund) Fund) etc. etc. Miscel Miscellan laneous eous compens compensati ation: on: It may includ includee employee employee assistanc assistancee programs programs (like psychological psychological counseling, counseling, legal assistance assistance etc), discounts on company products, use of a company cars, etc.
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RETENTIONS STRATEGIES ADOPTED BY TECH MAHINDRA Strategy adapted by company for retention of employees
1) Righ Rightt Hi Hiring ring 2) Traini Training ng employ employee ee proper properly ly 3) Rewarding Rewarding - For career career Progressio Progression n and Development Development 4) Perfo Perform rman ance ce Manag Managem emen entt 5) Regulat Regulating ing Emp Employ loyee ee cycle cycle Annual rate of employee leaving is 9%- 10% yearly.
SKILLS ANALYSED BY COMPANY
TECHNICAL SKILLS
BEHAVIOURAL SKILLS
1) Comm Communi unica cati tion on skil skills ls 2) Attitude ude 3) Acco Accomm mmod odat atio ion n 4) Flexib Flexibili ility ty toward towardss work work
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5) Willin Willingne gness ss for for 24/7 24/7 dedicati dedication. on.
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EMPL EMPLOY OYER ERS S & TH THEI EIR R KE KEY Y DRIV DRIVER ERS S TO ATTR ATTRAC ACT T AND AND RETA RETAIN IN TALENT o
Early responsibilities in career
o
Flexible and transparent organizational culture
o
Global opportunities through a variety of exposure and diverse experiences
o
Performance Recognition
o
Strong global brand
o
Value-based environment
o
Pioneer in many people practices
o
Learning and growth opportunities
o
Competitive rewards
o
Opportunity to grow, learn and implement
o
Strong social security and employee welfare performance- oriented cu lture
o
Strong values of trust, caring fairness, and respect within the organization
o
Freedom to operate at work
o
Early responsibility in career
o
Training and learning opportunities
o
Visible, transparent and accessible leaders
o
Competitive rewards
o
Innovative HR programs and practices
o
Organization philosophy and culture
o
Job stability
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o
Company brand
o
Open , transparent, and caring organization
o
Management according to the managing with respect to guiding principles
o
Training ad development programs
o
High degree of autonomy
o
Value compatibility
ORGANIZATION ENVIRONMENT
It is not about managing retention. It is about managing people. If an organization manages manages people well, employee retention will take care of itself. itself. Organizations 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? •
Appreciation for the work done
•
Ample opportunities to grow
•
A friendly and cooperative environment
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A feeling that the organization is second home to the employee
•
Organization environment includes
•
Culture
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Values
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Company reputation
•
Quality of people in the organization
•
Employee development and career growth 37
•
Risk taking
•
Leading technologies
•
Trust
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IMPORTANCE OF RETAINING EMPLOYEES THE CHALLENGE OF KEEPING EMPLOYEES
Its changing face has stumped managers and business owners alike. How do you manage this challenge? How do you build a workplace that employees want to remain with … and outsiders want to be hired into? Successful managers and business owners ask themselves these and other questions because—simply put—employee retention matters: ➤
High High turnove turnoverr often often leaves leaves custom customers ers and employ employees ees in the lurch; lurch; depart departing ing employees take a great deal of knowledge with them. This lack of continuity makes it hard to meet your organization’s goals and serve customers well.
➤
Repl Replac acin ing g empl employ oyee eess cost costss mo mone ney. y. Th Thee cost cost of repl replaci acing ng an empl employe oyeee is estima estimated ted as up to twice twice the individua individual’s l’s annual salary salary (or higher for som somee positions, such as middle management), and this doesn’t even include the cost of lost knowledge.
➤
Recruiting employees consumes a great deal of time and effort, much of it futile. You’ You’re re not not the the only only one out ther theree vyin vying g for for qual qualif ifie ied d empl employe oyees es,, and and job job searchers make decisions based on more than the sum of salary and benefits.
➤
Bringing employees up to speed takes even more time. And when you’re shortstaffed, you often need to put in extra time to get the work done.
The Three Rs. of Employee Retention
To keep employees and keep satisfaction high, you need to implement each of the three Rs. of employee retention: respect, recognition, and rewards.
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Respect is esteem, special regard, or particular consideration given to people. As the
pyramid shows, respect is the foundation of keeping your employees. Recognition and rewards will have little effect if you don’t respect employees.
defined d as “speci “special al notice notice or attent attention ion”” and “the “the act of percei perceivin ving g Recognition is define clearly.” Many problems with retention and morale occur because management is not paying attention to people’s needs and reactions.
Rewards are the extra perks you offer beyond the basics of respect and recognition that
make it worth people’s while to work hard, to care, to go beyond the call of duty. While reward rewardss repres represent ent the smalle smallest st porti portion on of the retent retention ion equati equation, on, they they are still still an important one.
You determine the precise methods you choose to implement the three Rs, but in general, respect should be the largest component of your efforts. Without it, recognition and rewards seem hollow and have little effect—or they have negative effects. The magic truly is in the mix of the three.
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REWARDS & RECOGNITION AT TECHM When you implement the “three Rs” approach, you will reduce turnover and enjoy the following: ➣
Increased productivity
➣
Reduced absenteeism
➣
A more pleasant work environment (for both employees and you!)
➣
Improved profits
Furthermore, an employer who implements the three Rs will create a hard- to leave workplace, one known as having more to offer employees than other employers. You become a hard-to-leave workplace—one with a waiting list of applicants for any position that becomes available—purposefully, one day at a time. A steadfast philosophy that sets Employee Retention Strategies apart:
•
Uses Us es only only rese resear arch ch-b -bas ased ed,, theo theory ry-s -sup uppor porte ted d app appro roac ache hess to to impr improv ovin ing g emp emplo loye yeee engagement. Avoided are gimmicks such as employee of the month, suggestion boxes, prizes or other “carrots.” While commonly used, these short-term fixes fixes fail to produce genuine employee loyalty.
•
Empl Em ploy oyss an easy easy--toto-unde underrstan stand d syst system emss appr approach oach to to ensu ensurre the roo roott cause causess of turnover are addressed and the potential for lasting change unleashed.
•
Cust Custom omiz izes es all all activ activit itie iess to your your organ organiz izat atio ion’ n’ss uniqu uniquee histo history ry,, curre current nt prac practi tice cess and strategic objectives. Also considered are challenges unique to your industry sector, competitive marketplace issues and talent shortages.
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•
Invol nvolve vess thos hose respo espons nsiible ble for for imp mpllemen ementi ting ng chan change ge in actu actual allly crea creati ting ng the the change, ensuring input and improved shared understanding and support of all initiatives.
•
Integ ntegra rattes hand handss-on on,, acti action on-o -orrient iented ed appr approa oach ches es that hat enab enablle orga organi niza zattions ions to move forward quickly and effectively
•
Reco Recogn gniizes zes the the resea esearrch-p ch-pro rove ven n rol role of no-c no-cos ostt strat trateg egiies in devel develop opiing the the “glue” that builds employee loyalty and commitment.
•
Brings to your organi anization leading-edge organizationon-devel velopment best practices to effectively and quickly build a retention-rich culture.
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EMPLOYEE RETENTION MANAGEMENT WHEEL ADOPTED BY BPO COMPANIES AS LIKE AS TECHM
KEI’S
The first step to improving your employee retention is to understand why employees stay with their current employer. Many "experts" dwell on the reasons employees leave, which is not as important or revealing as the reasons they stay. Companies have tried many different programs and perks to hold onto good employees. However, studies show that these efforts are not enough to retain good employees when the support that is needed to achieve job success is not adequate.
Don't Waste Your Money on Things That Don't Make a Difference...
Among the countless inducements offered, only those identified in the center of KEi's Employee Retention Wheel™ are truly what give employees a consistent reason for
saying "no thank you" when tempted with a "sweeter offer." After years of study and experience, KEi has determined, and presented in the Retention Wheel, what factors do have the greatest impact on keeping employees. KEi has used this information to give employers the tools to meet the core needs that keep employees successful at their jobs, thus reducing the high costs associated with unwanted employee turnover.
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USING THE WHEEL TO IMPROVE EMPLOYEE RETENTION
KEi's Employee Retention Strategy is based upon two primary beliefs: (1) (1) It is diff diffic icul ultt for for empl employe oyers rs to reta retain in good good empl employ oyee eess if they they don' don'tt have have a process to hire the right people in the first place. (2) Retention Retention processes processes must directl directly y support the reasons reasons that that successful, successful, satisfi satisfied ed employees stay.
KEi's concentration on the center of the Employee Retention Wheel provides employers with with Intern Internetet-bas based ed tools tools that that give give employ employees ees sys system temati atic, c, ong ongoin oing g sup suppor portt to be successful in their work and satisfied with their employment.
The Center of KEi's Employee Retention Wheel: EIGHT FACTORS Definition Definition of successful: successful: my job is helping me to grow personally, professionally and
financially. Definition of satisfied: my employer is providing what I need to perform my job
successfully. 44
These eight central processes of the Employee Retention Wheel are the factors that are most critical to an employee's job performance success. ATTITUDE FOR EMPLOYING
A process to clearly define the way supervisors are expected to interact with employees; a process to give employees a way to express what is most important to achieve job success; and a process to give employers a way to demonstrate "Employing Values" through employment policies. This "Employer Mission Statement" is about how and who you hire, how you treat them, and the organization's values as an employer. It is about making sure that the Values for Employing™ are communicated to your employees and consistently implem implement ented ed through throughout out your organi organizat zation ion.. It is about about the total total employ employment ment package that goes beyond salary and traditional benefits. FINDING CANDIDATES
A process that gives employers a comprehensive way to communicate to job seekers what it takes to achieve short-term and long-term job success, and to attract the candidates who fit this criteria. SORTING APPLICANTS
A proces processs that that gives gives employ employers ers a way to confir confirm m whethe whetherr the attitudes attitudes and behaviors of job seekers are a match for their work environment. CHOOSING EMPLOYEES
A process that gives employers a way to define the specific interview questions that prove job seeker abilities to successfully perform the target skills; and a process that gives employers a way to verify the accuracy of resume/application
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data and interview responses. STARTING EMPLOYEES
A process that provides a way for new employees (before performing the job) to underst understand and "why "why the employ employers ers bus busine iness ss exists exists;" ;" "what "what makes makes the bus busine iness ss organization organization successful;" successful;" "why the employee's employee's job exists;" exists;" and "what it will take for the employee to achieve job success." INFORMING EMPLOYEES
A process that gives employers a way to provide essential information (from five critical information sources) that is needed by employees to make daily work decisions. IMPROVING EMPLOYEES
A process that gives supervisors and employees a way to work together to build personalized plans for improving each employee's priority job skills; and a process that gives the employer a way to "deliver skills-improving training curriculum" and to "measure the learning effectiveness" from the training experiences. REWARDING EMPLOYEES
A process that gives employers a way to define and communicate exactly how individual employee salaries are determined; and a process that gives employers a way to provide employees with extra incentive income that is earned through the achievement of cash generating business goals.
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10 WAYS TO RETAIN YOUR EMPLOYEE
Retaining key personnel is critical to long term success of an organization. A Retention Strategy has become essential if your organization is to be productive over time and can become an important part of your hiring strategy by attracting the best candidates who know of your track record for caring for employees. In fact, some companies do not have to recruit because they receive so many qualified unsolicited submissions due to their history of excellence in employee retention.
How do you get your employees employees to "fall in Love" with your organization? organization? This is a great question. Some recently conducted research lists these
TOP TEN STRATEGIES:
1. Tre Treat at your employ employees ees like like you treat treat your most most valuable valuable clients clients.. It is cheaper
to keep your good employees than it is to hire and train new ones. Your top 2025% should be courted as you would court and then service your top customers.
2. Get your your employe employees es to "Fall "Fall in Love" Love" with your your organizat organization. ion. Communicate
your vision in a compelling way. Show everyone the role they have to contribute to this vision. Create opportunities for people to connect with each other for support and to improve communication in work wo rk teams.
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Capture the Hearts of your workforce with: Compelling vision / Balance / Celebration-Fun Open Communication: Internal listening is a priority, multiple lines of communication. This is essential for managing change in a positive way with less sabotage, anger, resistance, and fear. 3. Strong retention retention strategie strategiess become become strong recruiting recruiting advantag advantages. es. 4. Reten Retentio tion n is much much more more effect effectiv ivee when when you put the right right perso person n into into the right job. Know the job! Know the employee and their motivations.
Half of the Fortune 500 companies are now using assessments to more fully understand each job and the soft skills that are required for top production within their specific company culture. These benchmarked skills are then compared against qualified applicants to help determine who will be successful in the position and fit well within their company's culture. These assessments are also used as a powerful professional development tool to enhance the training of continuous life-long learning. Advanced Fibre Communication is beginning to use this assessment process in hiring. 5. Mone Money y is impor importa tant nt but it is not the only only reaso reason n peop people le stay stay with with an organization.
If your compensation plan is in the top 20-30% of your industry, then money will often not be the reason why people leave. 6. Employe Employeee committee committeess to help develo develop p retention retention strategie strategiess is a very effective effective strategy.
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Get their input! Ask, what do people like about working here? What would you like changed to make your company a better place to work? Some companies, such as Advance Fibre Communication (AFC), have recognized that the special engineers and technical experts that are the cornerstones of their business, require special attention. Victoria Perrault, VP of Administrative Services for AFC, says that her company has identified the top 25% of their staff and caters to these special people by meeting their financial requirements and looking for the best package of benefits that these people peop le will find most positive as incentives to stay. They even have employee committees that work as "focus groups" to determine why people stay at AFC and what they might want to see changed to make AFC an even better place to work. 7. Leaders Leadership hip must must be deeply deeply inves invested ted in reten retention tion..
Management must be skillful communicating company policies in a way that creates "buy-in" from their staff and be open to employee input. Help create "own "owner ersh ship ip"" in your your empl employe oyees es.. Th Thee comp compan anie iess with with the the best best rete retent ntio ion n percentages are the same companies that are actively committed to retention. They know that is costs less to keep good people than to continuously have to replace unsatisfied employees and managers. 8. Recognition, Recognition, in in various various forms, is a powerful powerful retention retention strategy. strategy.
It does not have to cost a lot. US Dept. of Labor - 46% of people leave their jobs because they feel unappreciated. 9. Reme Rememb mber er,, the the "Fun "Fun Fact Factor or" " is very very impo import rtan antt to many many empl employ oyee ees. s.
Greg Peters, Past President and CEO of Mahi Networks in Petaluma, is one of
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many executives who reported that retention is often related to interpersonal connections and amount of FUN in work teams. The FUN Factor is part of the generation of workers that use activities as stress management in highly charged production environments where long hours are required. Greg has encouraged Ping-Pong tournaments and basketball leagues for interpersonal interaction, fun, and and stre stress ss mana managem gement ent.. Th Thou ough gh not not every everyone one can can parti partici cipat patee in phys physic ical al activities, this sets the tone in a culture based on competition, health/well-being, and interactions that are inclusive beyond work.
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EMPLOYEE MORALE PREVENT COMPANIES FROM ACHIEVING RETENTION SUCCESS Despite years of research that point to far different solutions, many companies use the wrong tactics when trying to improve employee morale, satisfaction and retention. These myths prevail, in part, because businesses have used these methods, however wrong, for a very long time and have become used to trying the same ideas. MYTH #1: PEOPLE MOST OFTEN LEAVE A COMPANY FOR MORE PAY.
Exit interviews, conducted to learn why people leave an organization, contain some of Americ America’s a’s greate greatest st ficti fiction. on. People People freque frequentl ntly y say they’r they’ree leavin leaving g for more more mon money ey because it’s the easiest reason to give. More often the causes leading to departure are related related to issues that were unsatisfy unsatisfying ing in the job or the company. company. Typical Typical issues that cause cause dissat dissatis isfac factio tion n are compan company y polici policies es and procedu procedures res,, qualit quality y of sup superv ervisi ision, on, working conditions, relationship with the immediate supervisor and salary. Yes, pay does matter. While research shows most people don’t actually leave a job for more money, there are two important facts: Very-low-income workers will leave for more money because it’s a survival issue. For the rest of workers, the issue of money actually is about fairness. People become dissatisfied with pay when they feel it is unfair within the company, within the industry or when pay doesn’t seem to match the amount or type of work required. To increase employee satisfaction and retention, companies make more gains by working to improve whether people feel a sense of achievement, recognition, competence and growth, whether there are choices about how work gets done and whether employees feel respected by management..
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MYTH #2: INCENTIVE PROGRAMS PRODUCE LONG-TERM PROFITS AND IMPROVE PRODUCTIVITY AND MORALE.
So, who doesn’t like free stuff? However, incentives such as gifts and cash bonuses for meeting speed and volume goals don’t affect employee commitment. They’re really a throwback to outdated management beliefs that workers must be coerced in order to work work hard hard.. All All the the extr extras as don’ don’tt add add up to the the real real glue glue that that crea create tess empl employ oyee ee commitment: the chance to learn and grow, meaningful work, good supervisors and respect and appreciation for a job well done. Incentives have been over-used particularly in the the past past deca decade, de, as manag managem ement ent books books tout touted ed the the impo import rtan ance ce of impr improv ovin ing g recogni recognitio tion n of excell excellent ent work. work. Yet, Yet, studie studiess sho show w that that carrot carrot-and -and-st -stick ick motiva motivati tion on actually does not pay off in long-term company profitability or employee satisfaction or retention. To the contrary, incentives can harm quality when employees aim for speed or other goals rather than quality. MYTH # 3: PEOPLE DON’T WANT MORE RESPONSIBILITY.
They don’t want more work if they’re already overloaded due to lean staffing; but people indeed want the opportunity to grow and develop their skills, advance their careers and have the opportunity for greater variety. Keep in mind what the research confirms: People do want to try new things, to feel skillful and to experience the personal satisfaction of higher levels of achievement. People don’t need a job promotion in order to gain more responsibility. The same job can be broadened to include more variety, more contact with different parts of the organization and greater control over decisions on accomplishing work tasks.
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MYTH #4: LOYALTY IS DEAD.
Not at all, though it is ailing in many organizations. People are seeking greater work-life balance than in the past, and employers have made great strides in providing more flex flexib ible le hour hourss and and dres dresss codes codes.. Stil Still, l, peopl peoplee seek seek to make make a contr contrib ibut utio ion, n, and and organizations that provide healthy doses of the main satisfiers enjoy significantly lower turnover and higher morale. Profits are higher, too, according to recent research studies. Things have changed, indeed. Today’s workers will, in fact, change careers and jobs much more often. When the economy is good, people have become much more at ease in changing companies, are more likely to acquire new skills and move to companies that offer greater chance to use more of their knowledge and more willing to take the risks of starting anew at another organization. What has emerged in current management studies are that the same qualities that hold employees are the ones that best serve the customers: Employees who can make quick decisions on behalf of the customer and the company; employees who have a broader scope of responsibility that allows them some freedom and leverage to solve customer problems; learning opportunities that give employees the skillfulness to address customer issues; and supportive management and supervisors who use any mistakes that occur as teaching opportunities. MYTH #5: IMPROVING EMPLOYEE SATISFACTION IS EXPENSIVE.
Research tells us the true satisfiers can’t even be bought: career growth, meaningful work, respect and appreciation and being able to influence how work gets done. In these leaner times employers have the same opportunity to gain true loyalty despite lowered budgets.
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The trinkets and prizes given in recognition and rewards programs aren’t necessary ingredients for developing an engaged workforce. The “glue” that holds people is made of much different stuff: Management that listens and responds to employees’ ideas about improving service, supervisors who support people’s growth and initiative, training in how how to do the the job job succ succes essf sful ully ly,, good good rela relati tions onshi hips ps with with cowor coworker kerss and and genui genuine ne appreciation for a job done well. There are no costs incurred to build or enhance these motivators. MYTH #6: EMPLOYEE SATISFACTION IS “FLUFF.”
Does having engaged workers make a difference difference in the bottom bottom line? Studies Studies now show that lower turnover and greater greater levels of employee satisfaction satisfaction have a definite definite positive positive impact on customer satisfaction and profitability, which are the key factors in company growth and sustainability. Consider these facts: •
A strong link was found in a study by PricewaterhouseCoopers between employee retention and the quality qu ality of service as rated by companies’ customers.
•
Acco Accord rdin ing g to the the Ame Ameri rica can n Soci Societ ety y of Tra Train inin ing g & Deve Develo lopm pmen ent, t, org organ aniz izat atio ions ns that invested the most in training had higher gross margins and income per employee.
•
Thee cost Th cost of of repl replac aciing an an empl employ oyee ee who who lea leave vess has has been been es estimat imated ed by by var various ious studies to be between 70 and 200 percent of that worker’s annual salary.
•
Thee Coun Th Counci cill on Com Compe peti titi tive vene ness ss fou found nd tha thatt a 10-p 10-per erce cent nt inc incre reas asee in edu educa cati tion on has a more positive impact on productivity than a 10-percent increase in work hours.
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Investing in people and using the most effective management practices increases profits. MYTH #7: SUPERVISORS ARE THE PROBLEM.
Many Many senior senior leader leaderss expres expresss dismay dismay about about the qualit quality y and action actionss of their their middle middle managers and front-line supervisors. The “blame game” is old, yet the solutions are strikingly similar to those required to build an engaged workforce. In most organizations today, supervisors have more people reporting to them than in the past, more demanding customers than ever and greater amounts of change – all occurr occurring ing at the same time. time. Yet, Yet, the amount of train training ing provid provided ed to manage managers rs and supervisors in many organizations is minimal. More importantly, the amount of time that senior managers spend in dialogue with middle and line managers also is minimal. Middle managers and supervisors can appear resistant to improvement efforts. However, the true failure exists in our understanding of their world, the challenges they face and the support they need in order to be successful. Successful organizations seek to build teamwork between senior leaders and middle managers and line supervisors.
MYTH # 8: MY COMPANY/INDUSTRY/PEOPLE ARE DIFFERENT!
Yes, every company is unique, and every industry has its own set of unusual challenges. However, a very costly mistake is made when we believe information from other sectors doesn’t apply to us or our organization. Retention research studies cross cross all industries, industries, all types of work settings and in varied economic conditions. Still, the same results come up time and again. We build employee loyalty – and, indirectly, customer loyalty – through providing people with growth and learning opportunities, minimizing red tape, allowing people to think and make good choices, supporting middle managers and front-
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line supervisors and appreciating the efforts that people give to help our customers. It’s downr downrig ight ht dange dangero rous us to ignor ignoree thes thesee findi finding ngss – risk risky y to the the bott bottom om line line and and the the organization’s future.
BARRIERS TO SUCCESS •
Lack of support from management team.
•
Inability to provide hard numbers.
•
Company culture does not support change.
•
Back lash from single workers.
•
Failure of other programs due to low utilization.
•
Mana Manager gerss do not view view work work/l /lif ifee init initia iati tive vess as busi busine ness ss tool toolss that that impac impactt employee retention.
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FACTORS AFFECTING EMPLOYEE RETENTION AT TECHM Most managers managers understand understand the importance importance of employee employee retention and its impact on the over overal alll heal health th and and vita vitali lity ty of an organ organiz izat atio ion. n. Th Thee impo import rtan ance ce of reta retain inin ing g top top organizatio organizational nal talent will only increase over the coming coming years as the massive massive cohort of baby boomers begin to reach retirement age making it easy for younger employees to find work. In a previous article we identified some useful tips to help improve employee retention in your organization. Given the importance of employee retention, we have compiled anot anothe herr list list of 10 impo import rtan antt fact factor orss that that can can affe affect ct empl employ oyee ee rete retent ntio ion n in you your r organization. • Shorten the feedback loop
Do not wait for an annual performance evaluation to come due to give feedback on how an employee is performing. Most team members enjoy frequent feedback about how they are performing. Shortening the feedback loop will help to keep performance levels high and will reinforce positive behavior. Feedback does not necessarily need to be scheduled or highly structured; simply stopping by a team member's desk and letting them know they are doing a good job on a current project can do wonders for morale and help to increase retention. • Offer a competitive compensation package
Any team member wants to feel that he or she is being paid appropriately and fairly for the work he or she does. Be sure to research what other companies and organizations are offering in terms of salary and benefits. It is also important to research what the regional 57
and national compensation averages are for that particular position. You can be sure that if your compensation package is not competitive, team members will find this out and look for employers who are willing to offer more competitive compensation packages. • Balance work and personal life
Family is incredibly important to team members. When work begins to put a significant strain on one's family no amount of money will keep an employee around. Stress the importance of balancing work and one's personal life. Small gestures such as allowing a team member to take an extended lunch once a week to watch his son's baseball game will likely be repaid with loyalty and extended employment with an organization. • Beware of burnout
Staff adequately to reduce the amount of unwanted overtime a team member must work. Some employees enjoy the extra money that accompanies accompanies overtime overtime hours, while others would rather spend their time with their families or doing other activities they enjoy. Burnout can be a leading cause of turnover. Recognize the warning signs and give employees a break when they need it. • Provide opportunities for growth and development
Offer opportunities for team members to acquire new skills and knowledge useful to the organization. If an employee appears to be bored or burned out in a current position offer to train this individual in another facet of the organization where he or she would be a good fit. Nobody wants to feel stuck in their position will no possibility for advancement or new opportunities. • The ability to provide input and be taken seriously
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Everybody has opinions and ideas, some are better than others. However every team member wants to feel that their input is welcome and will be taken seriously without ridicule or condescension. Some of the greatest ideas can come from the most unlikely of places and people. Creating a culture where input is welcome from all level of the organizational chart will help your organization grow and encourage employee retention. • Management must take the time to get to know team members
It's not a big surprise surprise that one of the greatest greatest complaints complaints that employees employees express in exit interviews is a feeling that management didn't know they existed. Nobody wants to feel like just another spoke in a big wheel. Managers are very busy - everybody is busy, but it is crucial that managers and supervisors take the time get to know the team members who work under them. Learn and remember a team member's name, what skills and talents they bring to the table, and what their business interests are. The time spent by management getting to know team members is well invested and can eliminate the headaches caused by having to continually hire and re-train new employees. • Provide the tools and training an employee needs to succeed
Nothing can be more frustrating to an employee than a lack of training or the proper tools to successfully complete his or her duties. You wouldn't try to build a house without a hammer, so why should an office job be any different? Providing a team member with the tools and training she needs to be successful shows a commitment and investment in that employee and will encourage the team member to stay with the organization. • Make use of a team member's talents, skills, and abilities
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All team members have knowledge, skills, and abilities ab ilities that aren't directly related to their job description, but are still useful to an organization. Utilizing a team member's talents in areas other than their current position will indicate to an employee that management appreciates and recognizes all that an employee has to offer to the organization. This can also provide work variety and helps to break up the everyday grind of work. • Never threaten a team member's job or income
While threatening an employee with termination or demotion might seem like a surefire way to get the results needed from him or her, doing so will likely cause the employee to leave the organization. organization. Put yourself yourself in the employee's employee's shoes, what is the first thing you would do if your job was threatened? Odds are you would probably update your resume and start checking checking for open job pos postin tings gs expect expecting ing the worst. worst. If a team team member member's 's performance is not what you had hoped it would be, work with that team member on ways to improve his performance, saving termination only as a last resort.
REASON FOR EMPLOYEE TO COME TO TECHM •
Pay, Location, Location, Benefits, Benefits, Advancement Advancement Possibili Possibilities, ties, Job Security, Security, Nature Nature Of Work, Personal/Family Time.
REASONS FOR EMPLOYEE TO STAY WITH TECHM •
Confidence Factor-they believe in potential success/leadership strategies
•
Emotional Factor- (Huge) contribution, recognition, appreciation
•
Trust Factor- 2 ways- promises/commitments kept (strong link to loyalty)
•
Fit Factor- Values/ethics are a good fit
•
Listening Factor- Are they heard and valued? 60
SOLUTION FOR THE PROBLEMS FINDING THE CAUSE
OF
ATTRITION
Have a survey survey among employees employees to find the reasons for attrition. attrition. If possible, possible, have exit interviews to know the reasons for resignations. If a key employee resigns, it should be taken up on a priority basis and the senior management should meet the employee to discuss his reasons for leaving and evaluate whether his issues bear merit and whether they can be resolved. resolved. Steps can be taken to avoid similar similar reasons from occurring in the case of others, in similar positions.
What can be done?
Though, it is impossible to scrap problems totally, there are certain ways by which BPO manag managem ement entss can can tackl tacklee attr attrit itio ion. n. Sinc Sincee the the ever every y orga organi nisa sati tion on is uniqu unique, e, thes thesee companies need to develop innovative ways to tackle their problems. Human Resources department of companies must address these issues, and along with the management need to evolve strategies to retain employees at all levels.
At the time of Recruitment •
Select the right people through competency screening.
•
Use psychometric tests to get people who can work at night and handle the monotony.
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•
Offer an attractive, competitive, benefits package.
•
Make clear of performance enhanced incentives and other benefits. Keep these promises, later.
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AT THE OFFICE
•
An employee’s work must be communicated to him clearly and thoroughly. The details of the job, its importance, the way it should be done, maximum time that can be allotted allotted to complete complete it etc., must be made clear. clear. If there are are changes to any of these, let the employee know at the earliest
•
Give the employees necessary tools, time time and training. The employee must have the tools, time and training necessary necessary to do their job well - or they will move to an employer who provides them.
•
Have a person to talk to each employee at regular intervals. Listen and solve employee complaints and problems, as much as possible. Fairness and impartial treatment by seniors is important. Help employees manage stress, both at work and if possible, off work too. Give them special concessions, when in need. Treat the employees well & provide dignity of job.
•
The quality of the supervision an employee receives is critical to employee retention. Frequent employee complaints arise on this issue.
•
Provide the employees a stress free work environment. People Pe ople want to enjoy their work. Make work and work place p lace cheerful and fun-filled as possible.
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NIGHT SHIFTS
1. Have Have doctors doctors to advise advise them them about healt health h problems problems and and the ways and means means to deal with them. Provide dietary advice: - Dos and donts. Help them to maintain their health. 2. Orga Organi nize ze progr program amme mess wher wheree peopl peoplee from from other other prof profes essi sions ons,, who who have have night night shifts talk to BPO employees about their experiences. Other organisations like Army, Railways, Hospitals and various government services etc., also have night shifts. 3. Organize Organize training, training, counsell counselling ing and developm development ent programmes programmes for for employees. employees. Tell Tell them that their work is important. Encourage the best performers to share their experiences with others and guide others. The emphasis is to create the desire to learn, enjoy and be passionate about the work they do. 4. If neede needed, d, prov provid idee spec specia iall ligh lights ts in the the offi office ce/w /wor orkpl kplac acee to ensu ensure re that that thei their r bodies get sufficient vitamin D. One distinct disadvantage of night shifts is the sense of disorientation with friends and family members. Concentrate on this problem and develop innovative solutions and ways to deal with it. Additional holidays for work on national holidays and festivals, holidays for family functions etc., can go a Long way.
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EMPLOYEE RECOGNITION INCREASES RETENTION
It seems that now more than ever employee recognition is limited at best in many organi organizat zation ions. s. Unfort Unfortuna unatel tely y many many manage managers rs don don't 't und unders erstan tand d the import importanc ancee of recognizing a team member's hard work and a job well done. Many might even ask why they should recognize their employees when they are "just doing their job." The truth is that recognizing employees for their hard work is one of the least expensive and easiest ways to improve the level of employee retention in your organization. The return on investment for a manager's time and limited expenses can be incredible. Recognizing an employee's performance reinforces positive behavior and encourages additional positive behavior. If a team member feels that he or she is appreciated they will be much more likely to repeat their behaviors in the future and even put out more effort than before. When a business business leader understands understands the power of recognizing recognizing his or her employees the culture of an organization reacts to this recognition and moves in a positive direction helpin helping g to retain retain more employee employees. s.
Employ Emp loyee ee recognit recognition ion can be as simple simple or as
extravagant as one desire. The following is a short list of simple ways to recognize team members for a job well done and improve retention in your organization. •
A simp simple le "th "than ank k you" you" or or "nic "nicee job" job" giv given en in in regu regula larr freq freque uenc ncy y can can sign signif ific ican antl tly y boost team morale. Often times a team member will greatly appreciate the time you spent to find him at his desk d esk and deliver the message in person.
•
Send Send a tha thank nk you you card card or e-ca e-card rd.. Als Also o pho photo toco copy py the the tha thank nk you you and and docu docume ment nt the the reason for the recognition in the employee's file. Let the employee know you did this - it will let her know that her hard work will not be forgotten. 65
•
Movi Mo viee tick ticket ets, s, gif giftt cert certif ific icat ates es,, or an eng engra rave ved d gift gift are are exc excel elle lent nt rew rewar ards ds for for an an employee who has excelled or put in the extra effort to make a project happen.
•
Reco Recogn gniz izee the the team team mem membe ber' r'ss cont contri ribu buti tion on in in fron frontt of mem membe bers rs of of mana manage geme ment nt.. This can reduce the tendency for employees to feel that their supervisors take all the credit for their hard work.
•
Reco Recogn gniz izee loya loyalt lty y and and exce exceed edin ing g expe expect ctat atio ions ns.. Ment Mentio ion n the the team team mem membe ber' r'ss hire hire anniversary, large contract won, or surpassing of a sales goal in the company newsletter or at a staff meeting.
•
Know Know how how to to rec recog ogni nize ze you yourr sta staff ff.. Not Not all all sta staff ff memb member erss wan wantt to to be sing single led d out out at a gathering of hundreds of fellow team members, while for others it would make their week. The approach to recognizing team members can vary greatly by generational cohort. You might seriously embarrass a baby boomer by having them stand up in front a
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RETENTION MANAGEMENT STRATEGIES HELP TO DRIVE REVENUE GROWTH Employee satisfaction is essential to any effective employee retention strategy - any good HR manager knows that. However few managers think of the impact that employee satisfaction has on their customers and ultimately company profits. One can assume that happier, more productive employees will make more sales, treat customers better, and ultimately make more money for the company, but few companies have analyzed this assumption to the extent that Sears, Roebuck and Company has. Sears has put this common assumption to the numbers test and the results are intriguing to say the very least. 1992 was the worst year on record for Sears, losing almost 4 billion dollars on over 52 billion dollars in retail sales. The early and mid 1990s were truly trying times for the retail giant and tested the will and resolve of managers and employees alike. During this time the company was in near shambles, shambles, morale was low, revenues revenues were suffering suffering,, and the bottom line was hemorrhaging red ink. This was in stark contrast to nearly a century of stellar results that Sears had comfortably enjoyed. For Sears, something needed to be done, and fast! Sears began their turnaround by identifying three key objectives: Creating a compelling place to work, a compelling place to shop, and lastly creating a compelling place to invest. invest. One of the tools used to establish establish these objectives objectives was the employee-custome employee-customerr profit chain. The employee-customer-profit chain is essentially a flow chart that diagrams revenue creation starting with employee attitudes and satisfaction, followed by
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its effect on customer satisfaction, and ultimately the effect on revenue and bottom line profit generation. One thing Sears realized it needed to do was exert a greater effort focusing on the customer. This is often times easier said than done for many organizations. However Sears took an innovative approach to increasing customer focus. Based on the employeecustomer-pr customer-profit ofit chain, it realized realized that it could not better better focus on the customer without without first focusing on its employees. For Sears 70% of its workforce was part-time status and turnover among its part-time workforce had become alarmingly high. Sears suspected that low morale and poor employee attitudes towards the company were to blame. Sears began a rigorous process of measuring employee attitudes and satisfaction via a 70 question employee survey. The result resultss of this this survey survey were were then then juxtap juxtapose osed d to custom customer er satisf satisfact action ion surveys surveys and ultimately compared to revenue and profit trends for the company. The correlations drawn from the data were greater than Sears could have ever imagined. Undoubtedly Sears expected to see some positive correlation between employee and customer customer satisfaction satisfaction and ultimatel ultimately y revenue revenue and profit profit generation; generation; however they were amazed to see just how great an impact employee satisfaction levels had on the bottom line. The data revealed that for each five point improvement on the employee attitude scale, there was a subsequent 1.3% improvement in customer satisfaction, and a 0.5% increase in revenue growth. A 0.5% 0.5% increa increase se in revenu revenuee might might sou sound nd minisc miniscule ule,, however however when it is based based on revenues of over 50 billion dollars it adds up quickly and significantly. For Sears this would equate to a 250 million dollar increase in revenues a year! This revenue increase
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does not require investments into advertising, new facilities, or improved operations, only an investment into the satisfaction and happiness of employees. There are also cost savings that can be attributed to improved levels of employee satisfaction. It should come as no surprise that happy employees stay in their jobs longer than unhappy employees. By focusing on increasing employee satisfaction Sears was able to concurrently increase revenues and reduce the costs associated with employee turnov turnover. er. Sears Sears was also also able able to determ determine ine that that employ employees ees with with greate greaterr levels levels of satisfaction and a favorable attitude towards the company were more likely to speak positively about the company and recommend shopping there to friends and family members. By increasing employee satisfaction Sears was able to generate free word of mouth advert advertisi ising ng spread spread by its employee employees, s, thus thus in a way reducing reducing the reliance reliance on paid paid advertising to generate revenue. Sears realized the importance of its employees and their levels of satisfaction and made it a corporate goal to increase levels of employee satisfaction throughout the company.
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STUDY SUGGESTS EMPLOYEES LEAVE BOSSES, NOT JOBS
Careful selection of employees and managers can have a huge impact on your employee retention efforts and employee turnover costs at your organization. It has been said more than once, and for good reason, that employees leave their bosses - not their jobs. A Flori Florida da State State Univer Universi sity ty study study schedul scheduled ed for full releas releasee in the Fall 2007 issue of Leadership Quarterly confirms this. The study shows that 40% of employees work for bad bosses based on survey results. The reasons that employers score poorly po orly are varied and many: •
39% of workers said their supervisor failed to keep promises.
•
37% indicated their supervisor failed to give credit when due.
•
31% said their supervisor gave them the "silent treatment" during the past year.
•
27% report their supervisor made negative comments about them to other employees or managers.
•
24% indicated their boss invaded their privacy.
•
23% said their supervisor blamed other to cover up personal mistakes or minimize embarrassment.
So what what does does this this all all boil boil down down to? to? Th Thee effe effect ctss of havi having ng bad bad boss bosses es in your your organization can be devastating. High turnover, poor employee morale, employee theft, diminished customer service, substandard employee performance, lower production, and an organizational culture of fear and mistrust can all be blamed in part on poor bosses and and mana manage gers rs.. Th Thee costs costs of havi having ng poo poorr mana manager gerss and boss bosses es can be incr incred edib ible le.. Consid Consider er the cost cost of employ employee ee turnove turnover, r, which which is differ different ent for all indust industrie riess and positions, but bu t has h as been roughly estimated at $15,000 - $17,000 per employee in low to moderately skilled positions.
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EMPLOYEE RETENTION STRATEGIES FOR REDUCING EMPLOYEE TURNOVER COSTS At The Rainmaker Group we are committed to helping your organization Maximize Possibility by identifying and retaining top performers to achieve a high retention and high performance workforce. We understand that time is money to your organization. Ever Ev ery y minu minute te of ever every y day day that that you yourr empl employ oyee ee rete retent ntio ion n probl problem emss pers persis istt you your r organization is losing valuable time, energy, and resources. With the use of the powerful tools at our disposal, our employee retention experts will get to know your team and organizational culture better than you ever could have imagined. By doing so we can get down to the real causes of employee turnover in your organization and develop an employ employee ee retent retention ion program program that is right right for your team. team.
Our employee employee retenti retention on
programs deliver results - we guarantee it! Our clients always see a sizable return on invest investmen mentt in the form form of improv improved ed profit profitabil ability ity,, reduce reduced d employ employee ee turnove turnover, r, and enhanced employee morale. Stop unwanted employee turnover dead in its tracks and get back to doing what you do best: growing and leading your organization.
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REAL HR PRACTICES - TECH MAHINDRA
To retain employees it is very important to give them a feeling of belongingness in the company. For this they conduct many activities like:
1. There’ There’ss a weekly weekly meetin meeting g of every every dept where where the employ employees ees are asked asked what their expectations are from the company to make the atmosphere and climate joyful.
2. Afte Afterr ever every y 15 days days one one day day FUN TRIP is conducted (within 50-70 Kms) from the company. Places like Essel world, Lonavla, Alibagh Beach, Matheran Hill Station etc where the employee can have fun and relax from their regular work. The destination of the fun trip is decided by the employee themselves. The expense is held by the company.
3. Every Every Employ Employee ee is given given a Laptop Laptop,, Mobile Mobile (Rs 500 card card free every every month) month) or Landline Phone free.
4. “MY DAY”- Every week the employee can have 2 “my days”, i.e. for two days a week they can have their own time away from office after 1.30 pm.
5. Annual Day – The annual day is on 24th dec. Every employee gets a gift voucher, Lunch at some good hotel ho tel and a fun tour to Essel world or water Kingdom etc. 72
6. Annu Annual ally ly they they also also have have inte interd rdepa epart rtme ment ntal al matc matche hess like like Cric Cricke kett Matc Matche hes, s, Volleyball Matches etc to improve team building and feeling of belongingness. 7. Culture: On every Indian festival there’s a big celebration. ce lebration. a. Ex Ex:: On On Sank Sank rant rant they they hav havee a “BHARTIYA JEVAN”. They fly colourful kites and have competition between the employees. b. Ex: On Diwali they enjoy sweets and crackers with traditional dresses. 8. Departmental Lunch: Everyday one dept have lunch together. Each and every member of the that Dept eat and drink together. This helps in improving the team spirit and the feeling of belongingness in the dept. 9. Em Empl ploy oyee ee of of the the wee weekk- AWARD: a. Ev Ever ery y week week one worker worker is honour honoured ed based based on the perfo perform rman ance ce of the the worker. This improves their moral and encourages them to work hard for the coming week. b. Every month one employee is honoured as Employee of the Month c. Annually one employee is honoured as Employee of the year. Thei Th eirr name namess are are decl declar ared ed on the the Noti Notice ce boar board d and comp compan any y maga magazi zine ne whic which h encourages others also to work better. 10. New employees employees joining joining the company are given a training of 8-10 days. The training consists of induction and orientation program along with a 2 day trip. This is a good ice breaking session and helps them to know their colleague. The lasts two days training is conducted in the actual job site.
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11. Higher education: If any employee wishes for higher education the company sends the employee to South Korea for training and encourages them to study hard. 12. Car is provided to the entire manager and above. The petrol expense are taken care by the company. 13. Annually Annually every employee employee gets a 5 days paid leave. leave. 14. The company provides provides the facility facility of all indoor games along along with a Swimming Swimming pool for the refreshment of the employee. Ex. Table Tennis, Chess, Badminton, Snooker, etc.
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BPO SECTOR INDUSTRY BUSINESS PROCESS OUTSOURCING Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process.
Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry.
Few of the motivation factors as to why BPO is gaining ground are:
•
Factor Cost Advantage
•
Economy of Scale
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Business Risk Mitigation
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Superior Competency
•
Utilization Improvement
Generally outsourcing can be defined as - An organization entering into a contract with another organization to operate and manage one or more of its business processes.
When there are so many benefits associated with BPO industry…. when there are so many privileges for the BPO employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as well?? After 75
taking exit-interviews and analyzing the trend I am able to list out following reasons for a BPO professional to change his/her job. •
No growth opportunity/lack of promotion
•
For higher Salary
•
For Higher education
•
Misguidance by the company
•
Policies and procedures are not conducive
•
No personal life
•
Physical strains
•
Uneasy relationship with peers or managers
In an industry like BPO, the work can often be monotonous and opportunities for career grow growth th mini minima mal. l. So when when oppor opportu tuni niti ties es becko beckon, n, the the high high rate rate of attr attrit itio ion n is not surprising. However, there are some common reasons that especially cause people to leave. Surveys have listed night shifts, money, inability to handle various types of stress, monotonous work; company policies, lack of career growth, problems with those in senior positions etc., as some of the most common reasons listed by BPO employees, as reasons for quitting jobs.
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OBJECTIVES OF THE STUDY
•
To analyze the retention management system adopted by Tech Mahindra.
•
To analyze about retention strategies at Tech Mahindra.
•
To anal analyz yzee about about orga organi niza zati tion on and and cult cultur uree progr program amme me used used in BPO/ BPO/IT IT companies.
•
To study about employee retention strategies and all the systematic effort used to create and foster an environment that encourages current employees.
•
To know the reason of Tech Mahindra employees attrition and trends causing the job churning, problems facing in retaining qualified people or achieving workforce stability in a present implemented Employee Retention processes.
•
To know the extent of effectiveness of employee retention strategies adopted by Tech Mahindra.
•
Exploring and developing the employee retention strategies to mitigate the effect of factors causing high employee turnover
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RESEARCH METHODOLOGY RESEARCH DESIGN
A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. The research was taken in view of latest information and technology using in a stock market or securities companies. DATA SOURCES Primary Primary Data are those which are collected for the first time for a certain
investigation. These are original and essential raw data. No doubt the information has been collected as per company's holistic development of investors used in securi securiti ties es market market control controllin ling g their their risk. risk. In the study, study, the primar primary y data data and secondary data collection methods are used. DATA SOURCES Secondary data was obtained from journals, magazines, newspapers, books and
of course the Internet. RESEARCH INSTRUMENT
For doing the survey research, structured questionnaire with both open-ended and closed-ended questions was used.
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PLACE OF STUDY
Tech Mahindra, Sector-58, Noida (Uttar Pradesh)
LIMITATIONS OF THE STUDY •
Sample size is too small to reflect the opinion of the whole organization
•
Any organization should not reveal all the details of the Tech Mahindra with a focus on investors’ behaviour in stock market.
•
There is a time bound limit, as no one can study exhaustively in a very less time period of a number of days.
•
Lack of coordination and communication was experienced while collecting the data for the present volatile market.
•
Respondents seemed to be over burdened with work so they didn’t give proper attention.
•
People are hesitating in answering the question.
•
Employees were not interested in filling open- ended questions
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GRAPHICAL DATA INTERPRETATIONS 1 Reasons wise analysis at TECHM:
Reasons Personal Reasons(Relocation health Marriage) Higher Education Other Reasons Inadequate career growth/development opportunities Dissatisfaction with Payroll & Benefits. Problem with reporting manager Dissatisfied with Induction/ Training Dissatisfaction with working condition Lack of reward & Recognition opportunities
Numbers 14 4 5 6 16 3 3 3 6
Total
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Percentage 23% 7% 8% 10% 27% 5% 5% 5% 10%
Personal
Reasonswise wiseanalysi alysis: s: Education
30%
Other
25%
Inadec.g c.growth
20%
Dissatisfaction
15%
Dissatisfied atisfiedwithInduction tion
10% 5%
Dissatisfaction with working condition Lackof rewa&Recog
0%
GRAPHICAL DATA INTERPRETATION As per above graph, there are 27% are dissatisfied with payroll and benefits provided by TECHM and 23% are dissatisfied due to personal reasons, while most of dissatisfied due to working condition, induction and training, recognition opportunities while rest are of growth of career, reporting to manager and other reasons are mentioned.
2 Analysis on areas of improvement at TECHM:
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Improvement Areas Improvement in services like transport & cafeteria
Num Numbers bers Perce ercent ntag agee 10 17%
Any other areas
5
7%
10
17%
Improvement in HR policies/guidelines/practices
15
25%
Improvements in organizational policies and practices
10
17%
Improvements in resources /materials infrastructure
10
17%
Total
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Impr Improv ovem emen entt
in
comm commun unic icat atio ion n
chan channe nels ls
with with
TL's TL's
/Managers
Analysis onareas of improvement improvement
Impinserviceslike like transport & cafeteri afeteria
25% 20%
Any other areas
15% 10%
Impin commchannels nels with with TL
5% 0%
ImpinHRpolicies policies
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GRAPHICAL DATA INTERPRETATION As per above graph, there are 25% known their HR policies, guidelines, practices and 17% assume that there are improvement in organizational policies and practices, 17% are of assume that improvements in resources and material infrastructure.
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3 Is the training adequate at TECHM?
Is the training adequate at TECHM? Feedback
No.
Pe Percentage
Yes
38
63.33%
No
22
36.67%
Total
60
70 60 50 40
Yes No
30 20 10 0
GRAPHICAL DATA INTERPRETATION As per above graph, there are 64% approx assume that the the training adequate at TECHM TECHM while rest are assume as NO.
83
4 Is the induction adequate at TECHM?
Feedback
No.
Pe Percentage
Yes
36
60%
No
24
40%
Total
60
Is the induc induction tion adequate at TechM
Yes No
GRAPHICAL DATA INTERPRETATION As per above graph, graph, there are 60% assumes assumes that there should should be induction induction adequate at TECHM and rest are said NO.
84
5 Analysis on most and least liked practices at TECHM:
Best liked Practice
Practice Medical Education Policy Bi- Annual Appraisal All Policies are good Leave Policy Marriage
No. 11 6 17 12 10 4
Total
60
Percentage 18% 10% 28% 20% 17% 7%
Ananlysis on Most Most liked practices
30% 25%
Medical
20%
Education cation Policy olicy
15%
Bi- Annual Apprais Appraisal
10%
All Policies Policiesare good
5%
Leave Policy olicy
0%
Marriage Critaria
GRAPHICAL DATA INTERPRETATION As per above graph, there are 28% assume assume that the best bi-annual appraisal appraisal at TECHM while 20% assume that all policies are good while 17% assume that the leave policy are good and rest are above mentioned and liked by the employees of TECHM.
85
6 Referring or suggesting their friends / colleagues / relations to join TECHM or NO?
Yes
44
73%
No
16
27%
Total
60
Referrin ferring g or suggesting ting their Friends riendsto join join the the Company
Yes
No
GRAPHICAL DATA INTERPRETATION As per per above above grap graph, h, ther theree are are 73% assu assume me that that they they are are sugg sugges esti ting ng thei theirr frie friend ndss /colleagues / relations to join TECHM while rest are said ‘No’.
86
7 Anything which could prevent from departure to their employees at TECHM?
Change Nothing Good Pay Package Long Leave Promotion Total
No. 13 25 12 10 60
Percentage 22% 42% 20% 16%
Nothing PayPackage Long Leave Promotion
GRAPHICAL DATA INTERPRETATION As per above graph, there are 42% said that good pay package prevent from departure to their employees while 20% said long leave and rest promotion policies i.e. 16% of TECHM prevents to leave their employees.
87
8 MAJOR FACTOR OF JOINING NEW ORGANIZATION
Factor Not Joining any Company Salary Promotion & Salary Change of TL Designation
No. 22 18 6 9 5
Total
60
Percentage 30% 37% 10% 15% 8%
MAJOR MAJOR FACTOROFJOINI OINING NG NEW ORGANIZATION 40%
Not Joi Joining ningany Company
35% 30%
Salary
25% 20%
Promotion otion&Salary
15% Cangeof of TL
10% 5%
Designation
0%
GRAPHICAL DATA INTERPRETATION As per above graph, there are 37% said that salary is the best way to join a new organization while 30% said that not joining any company, 10% said that salary and promotion is basic aims of their career growth path while 15% aims are of change of TL and rest are desire of their designation as well.
1 Reasonwise analysis : 88
Total Respondents for the month 60 Reasons
Numbers
Percentage
Personal Reasons(Relocation health Marriage)
6
10%
Higher Education
5
8%
Other Reasons Inadequate career growth/development opportunities
5
8%
6
10%
Dissatisfaction with Payroll & Benefits. Problem with reporting manager
10 13
17% 22%
Dissatisfied with Induction/ Training
4
7%
Dissatisfaction with working condition Lack of reward & Recognition opportunities
4
7%
7
12%
Total
60 Reason Wise March-Apr il'07
25%
20%
15%
%
10%
5%
0%
n o i t ) a e g l c a o i a l r n e r o R a s ( M r s e n h t P o l s a a e e h R
n o i t a c u d E r e h g i H
s n o s a e R r e h t O
t r n e e e m r s a o i e t c l p i e e n t u a v e t r u d q / o e h p d t p a w o o n r I g
. h s t i t i w f e n n o e i t B c a & f l s l i o t r a y s a i D P
r e g h t a i n w a m m e g l n b i o t r r P o p e r
g n h t i i n i w a r d T e i f / s n i o t i a t s c s u i d D I n
h t n i o w i t i n d o i t n o c c a f g s i i t n a k r s o s i w D
& s d r n e o i a i t t i w i n n e u r g t f o r o c o p e k R p c o a L
Reason
According to the survey done in IICM, the most prompting reason for the employees appears to be “problem with the reporting manager” as it got 22% votes followed by “Dissatisfaction with Payroll & Benefits” with 17% .
Analysis on areas of improvement for organization
89
Improvement Areas Improvement in services like transport & cafeteria
Numbers
Percentage
13
22%
Any other areas Improvement in communication channels with Managers Improvement in HR policies/guidelines/practices Improvements in organizational policies and practices
10
17%
12
20%
10
17%
7
12%
Improvements in resources /materials infrastructure
8
12%
Total
60 Areas of Improvem ent March-April '07
25% 20% 15% % 10% 5% 0%
t r o p n i t s n n a a e t r i r e m e t e e i v k l f a o r s c p e & c m i I v r e s
s a e r a r e h t o y n A
n n i o h t t i i s n a t r e c w e m i s g n l e a v u e n n m o a n r p m a M o h m c c I
a R r p H / n s i e t i n n l s e e e d c m i i t e u g c v / o r s e p i c m i l I o p
s e n i i c i l s s t o e p i n l c e a t m n c e i o a r v t p o a d r i p z n n m a a I g r o
s l a n i i r s t e e t r n a u e m t c m / u e s r v e t s o r c r a r p u f n o i m s I e r
Areas
Areas of Improvement: IICMin spite of being considered as one of the place to work, majority of employees think “Improvement in communication channels with Managers” need to be improved with 20% votes
90
Is the training adequate at TechM? Feedback
No.
Percentage
Yes
34
56 56.67%
No
26
43.33%
Total
60
Was Was the training training Adequqte? 60.00% 50.00% 40.00% %30.00%
56.67% 43.33%
20.00% 10.00% 0.00% Y es
No Feedback
Training: Around 57% employees are satisfied with the training programmes
91
Is the Induction adequate at TechM? Feedback
No.
Pe Percentage
Yes
33
55%
No
27
45%
Total
60
Was Induction Adequate ? 60% 50% 40% %30%
55% 45%
20% 10% 0% Y es
No Feedback
Induction: Around 55% employees think that induction program was adequate
92
Analysis on Most and Least liked practices at TechM Best liked Practice Practice Medical Education Policy Bi- Annual Appraisal All Policies are good Leave Policy Marriage
No. 12 12 26 3 5 2
Total
60
Percentage 20% 20% 43% 5% 8% 4%
Most Liked Policy 50% 45% 40% 35% 30% 25% % 20% 15% 10% 5% 0%
43% 20%
20% 5%
M e d i c a l
E P d u o c l a i c y t i o n
A p A p n B r n i a i u s a a l l
a r e g o o d
P o A l i l c i l e s
8%
4%
P L o e a l i c v y e
M a r r i a g e
Policy
Best Liked Practices: “Bi annual appraisal” appeared to be the best liked practice at Tech Mahindra Ltd. which has got 43% whereas about the least liked practices, “NO INCENTIVES” got 32%
Least liked Practice at TechM. Practice Leave Policy Nothing No Incentives
No. 16 4 19
93
Percentage 27% 6% 32%
Appraisal Transfer Policy
6 15
Total
60
10% 25%
Most Disliked Policy Policy March-April'07 35% 30% 25% 20%
%
15%
32%
27%
25%
10% 5%
10%
6%
0% P o l i c y
L e a v e
N o t h i n g
I n c e N n o t i v e s
A p p r a i s a l
P o l i c y
T r a n s f e r
Policy
Interpretation: Interpretation: Referring or suggesting their friends to join the Company or Not?
94
Feed Feedba back ck No. No.
Perc Percen enta tage ge
Yes
39
65%
No
21
35%
Total
60
Referring to Friends March-April '07 70% 60% 50% 40%
%
30%
65%
20%
35%
10% 0% Y es
No
Feedback
Interpretation: Interpretation: Referring Referring to Friends about 65% employees said that they will refer this company to their family and friends.
95
ANYTHING WHICH COULD PREVENT FROM DEPARTURE
Change Nothing Good Pay Package Long Leave Promotion Good hr practices Change of TL Total
No. 11 20 4 6 10 9 60
Percentage 18% 33% 7% 10% 17% 15%
Prevention from Departure March-April '07 '07 35% 30% 25% %
20% 33%
15% 10%
18%
5%
17% 7%
10%
15%
0%
e n L s e T a g t i o c e a v f i k o t e o c c L m e r a P a g r o p n n g P y r o a a h L h P C d o d o o o G G
g i n h t N o
Change
Prevention from departure: “Good pay package” seems to be the primary reason which can prevent employees from leaving
96
MAJOR FACTOR OF JOINING NEW ORGANIZATION Factor Not Joining any
No.
Percentage
Company Salary Promotion & Salary Good hr practices Designation
9 21 12 10 8
15% 35% 20% 17% 13%
Total
60
Factor Factor For joining new organization March-Apr il '07 40% 35% 30% 25% %20%
35%
15% 10%
20%
15%
17%
5%
13%
0% Not Joining any Company
Sala Salary ry
Promoti romotion on & Salary
Good hr practices
Designation
Factor
Major factor joining other company: “Good pay package” appears to be the primary reason with 35% for joining the other company followed by “salary and promotion” with 20%supports
FINDINGS & ANALYSIS
97
1. Acco Accord rdin ing g to the the surv survey ey done done in Tech Mahi Mahindr ndra, a, the the reas reason on whic which h prom prompt ptss employees to leave the company appear to be” Dissatisfaction with Payroll & Benefits” with27% followed by Personal Reasons (Relocation health Marriage) Marriage) as it has got 23%. 2.
Areas Areas of Improvem Improvement ent:: Tech Mahindr Mahindraa employees employees think think that HR policie policiess need be improved which got 25%votes.
3. Training: Training: Around Around 63% employee employeess are satisfied satisfied with with the traini training ng programmes. programmes. 4. Induction: Induction: Around Around 60% 60% employees employees think think that that induction induction program program was was adequate. adequate. 5. Best Best Like Liked d Prac Practi tice ces: s: “Bi “Bi annu annual al appr apprai aisa sal” l” appe appear ared ed to be the the best best like liked d practices whereas about the least liked practice, “leave policy” seem to be b e fall in this category. 6. Refe Referr rrin ing g to Frie Friend nds: s: Abou Aboutt 73% 73% empl employ oyee eess said said that that they they will will refe referr this this company to their family and friends. 7. Preven Preventio tion n from departu departure: re: “Good “Good pay package” package” seem to be the primary primary reason reason which can prevent employees from leaving. 8. Major Major factor factor joining joining other other company: company: “Salary “Salary”” appears appears to be the primary primary reason reason for joining the other company.
98
FUTURE SCOPE - CHALLENGES FOR A HR PROFESSIONAL IN BPO Brand equity: People still consider BPO to be "low brow", thus making it difficult to
attract the best talent.
Standard pre-job training: Again, due to the wide variety of the jobs, lack of general
clarity on skill sets, etc, there is no standard curriculum, which could be designed and followed.
Ther eree are are hardl hardly y any benc benchm hmar arks ks for for comp compen ensa sati tion on and and benef benefit its, s, Benchmarks: Th performance or HR policies. Everyone is charting their own course.
Customer-companies tend to demand better results from outsourcing partners than what they could actually expect from their own departments. "When the job is being done 10,000 miles away, demands on parameters such as quality, turn around timeliness, information security, business continuity and disaster recovery, etc, are far higher than at home. So, how to be more efficient than the original?
Lack of focused training and certifications given this background, the recruiting and compensation challenges of HR departments are only understandable.
In general a person with any graduation can join any of the BPO. Some BPO's like to take people with MBA but then again the specialization are of an individual hardly makes any difference. Again, this is the industry; where there is no reference checks and very often people don't even specify there exact age. Lets me share with you some of the reasons as why people prefer to join a company: 99
•
Not get a better job.
•
Find nothing better to do.
•
Education level doesn't matter.
•
Good work environment.
•
Good Benefits.
•
Flexibility of time.
•
Attractive life style.
•
Transport facility.
WHY PEOPLE LEAVE IN BPO COMPANY? When there are so many benefits associated with BPO industry.when there are so many privileges for the BPO employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as well?? Here are some of the reasons for a BPO professional to change his/her job. 1.
No grow growtth oppo opport rtun unit ity/ y/llack ack of prom promot otiion
2.
For higher Salary
3.
For Higher education
4.
Misguidance by the company
5.
Pol Policies cies and and proc proced edur ures es are are not not cond conduc uciive
6.
No personal life
7.
Physical strains
8.
Uneas neasy y rel relat atiionsh onshiip wit with h peer peerss o orr mana manage gerrs
100
HR RETENTION PRACTICES ADOPTED BY TECHM As per NHRD NHRDN N has has speci specifi fica call lly y reco recogn gniz ized ed Tech Tech Mahi Mahindr ndraa for for its its perfo perform rman ance ce orie orient ntat atio ion n that that has has becom becomee cent centra rall to the the comp compan any y cultu culture re.. Th Thee perf perfor orma mance nce management system at the company is aligned to both, the business goals and values adherence. adherence. The company values/ operating operating principles principles are broken down into behavioral indicators that are observed and measured on a regular basis, which in turn linked to the personal effectiveness parameters in an individual's performance review. There is also an ongoi ongoing ng empha emphasi siss on trai traini ning ng needs needs asse assess ssme ment nt and peopl peoplee deve develo lopm pmen ent. t. Tech Tech Mahindra was also noted for its innovative practices in the areas of attracting the right talent, reward and recognition, promoting fun as a written down operating principle, learni learning, ng, employ employee ee commun communica icatio tion n and compen compensat sation ion which which are amongs amongstt the key reasons for the spectacular success of the company.
A part from the legal and mandatory benefits such as provident-fund and gratuity, these are: --
1. Group Medi-claim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female employees or spouse spouse of male employees. employees. All employees employees and their dependent family family members members are eligible. Dependent family members include spouse, non-earning parents and children above three months.
101
2. Personal Personal Accident Accident Insurance Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. This covers total / partial disablement / death due to accident and due to accidents. 3. Subsidized Food and Transportation: The organizations provide transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized. 4. Company Leased Accommodation: Some of the companies provides shared accommodation for all the out station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills as well as the Society char charge gess for for the the shar shared ed accom accommo moda dati tion on.. Th Thee purpos purposee is to provi provide de to the the employees to lead a more comfortable work life balance. 5. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities. 6. Corporate Credit Card: The main purpose of the corporate credit card is enable the timely timely and effici efficient ent payment payment of offici official al expense expensess which which the employ employees ees undertake for purposes such as travel related expenses like Hotel bills, Air tickets etc 7. Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding of the asset.
102
8. Persona Personall Health Health Care (Regula (Regularr medica medicall che check-u ck-ups): ps): Some of the BPO'S provides the facility for extensive health check-up. c heck-up. For employees with above 40 years of age, the medical check-up can be done once a year. 9. Loans: Many BPO companies provide loan facility on three different occasions: Empl Em ploy oyee eess are are prov provid ided ed with with fina financ ncia iall assi assist stan ance ce in case case of a medi medica call emergency. Employees are also provided with financial assistance at the time of their wedding. And, the new recruits are provided with interest free loans to assist them in their initial settlement at the work location. 10. Educational Educational Benefits: Benefits: Many BPO companies have this policy to develop the personality and knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees, examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification at India's top most Business Schools. 11. Performance Performance based incentives: incentives: In many BPO companies they have plans for, performance based incentive scheme. The parameters p arameters for calculation are process performance i.e. speed, accuracy and productivity of each process. The Pay for Performance can be as much as 22% of the salary. 12. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and approved approved by managem management ent to meet meet bus busine iness ss commit commitmen ments ts while while sup suppor porti ting ng employee personal life needs .The factors on which Flexi time is allowed to an
103
employee employee include: include: Child or Parent care, Health Health situation, situation, Maternity, Maternity, Formal Formal education program 13. Flexible objective ive is to provid providee flexib flexibili ility ty to the Flexible Salary Benefits: Its main object employ employees ees to plan plan a tax-ef tax-effec fectiv tivee compens compensati ation on struct structure ure by balanc balancing ing the monthly net income, yearly benefits and income tax payable. It is applicable of all the employees of the organization. The Salary consists of Basic, DA and Conveya Conveyance nce Allowan Allowance. ce. The Flexib Flexible le Benefi Benefitt Plan Plan consist consistss of: House House Rent Rent Allo Allowa wanc nce, e,
Leav Leavee
Trave Travell
Assi As sist stan ance, ce, Medi Medical cal Reim Reimbu burs rsem emen ent, t,
Spec Specia iall
Allowance 14. Regular Get together and other cultural programs: The companies organizes cultural program as and when possible but most of the times, once in a quarter, in which all the employees are given an opportunity to display their talents in dramatics, singing, acting, dancing etc. Apart from that the organizations also conduct various sports programs such as Cricket, football, etc and regularly play matches with the teams of other organizations and colleges. 15. Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/ based on their level in the organization.
104
RECOMMENDATIONS •
It is recomm recommende ended d that that the Tech Mahind Mahindra ra provid providee their their best best techni technique que in considering must be adopted to check the MTI effect in more appropriate manner in initial round. .
•
It is recommended that the Tech Mahindra provides their talent express should be modified to grab quality resources.
•
It is recommended that the facility management should me improved like lockers should be given to all employees.
•
Attrition problem in BPO is consistent, so to over come win-win model needs to be devised for this, satisfying the needs of both, the employer and the employee.
•
Needs of the employer employer : To get maximum returns from each employee, recover
training and development costs, minimize cost in terms of time in training new workforce, ensure that adequate no of people are there to carry on the process. •
Needs of the employee : Enriched job profile, better career path, challenging
work environment, future prospects of the job.
105
SUGGESTIONS 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 multidimensional 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, indicates that their managers pay 106
attent attention ion to them them and that that their their perfor performan mance ce matter matters. s. This This feedbac feedback k contrib contribute utess 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 wan t 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.
Employ Emp loyees ees have become become more more connect connected ed with with others others in the organi organizat zation ion through through project-based team work and process management activities. Employees are shifting their their loyalt loyalty y to people, people, teams and projec projects ts and away from from compan company y loyalt loyalty. y. It is organi organizat zation ionss that that create create the cultur culturee and climat climatee that that allow allow people people,, proces processes ses 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.
107
CONCLUSION
It is concluded that retention strategies adopted by Tech Mahindra and other BPO’s compan companies ies it plays plays an impor importan tantt role role for small and medium medium BPOs, that has been receiv receiving ing conside considerab rable le attent attention ion from from academ academici icians ans,, resear researche chers rs and practi practicin cing g HR managers. In its essence, retention comprises important elements such as the need or content, search and choice of strategies, goal-directed behaviour, social comparison of rewards rewards reinforceme reinforcement, nt, and performance-s performance-satis atisfacti faction. on. The increasing increasing attention 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 Retent Retention ion are availab available. le. Early Early theori theories es are too simpli simplisti sticc in their their approach approach toward towardss Retention. For example, advocates of scientific Management believe that money is the motiva motivatin ting g factor factor.. The Human Human Relati Relations ons Mov Moveme ement nt pos posit itss that that social social contact contactss will will motivate workers. Mere knowledge about the theories of Retention will not help manage their subordinates. They need to have certain techniques that help them change the behavior of o f employees. One such technique is reward. Reward, particularly money, is a motivator according to need-based and process theories of Retention. For the behavioral scient scientist ists, s, however however,, mon money ey is not import important ant as a motiva motivator tor.. Whatev Whatever er may be the argu argume ment nts, s, it can can be stat stated ed that that mo mone ney y can can infl influe uenc ncee some some peop people le in cert certai ain n circumstance. Being an outgrowth of Herzberg’s, two factor theory of Retention, job enrichment is considered to be a powerful po werful 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.
108
BIBLIOGRAPHY BOOKS / JOURNALS •
Char Charle less R. Gree Greer, r, Stra Strate tegi gicc Huma Human n Reso Resour urce ce Mana Manage geme ment nt:: A Gene Genera rall Managerial Approach, Second Edition, Person Education, 2008.
•
“Per “Perce ceiv ived ed Super Supervi viso sorr Suppo Support rt:: Cont Contri ribu buti tion onss to perc percei eive ved d orga organi niza zati tiona onall support and Employee Retention”. Journal of Applied Psychology, 2008, 565573
•
Khanew Khanewal al Rohit Rohit (Febru (February ary 200 2008), 8), "Winni "Winning ng the Retent Retention ion Game", Game", Human Human Capital, Pg. 10-12.
•
Human Resource Management C.B.Memoria
MAGAZINES & NEWS PAPERS •
BUSINESS WORLD
•
BUSINESS TODAY
•
OUTLOOK
•
The Economic Times
•
The Hindustan Times
•
The Hindu Business Standard Line
WEBSITES •
www.techmhr.com
•
www.hrbpoindustry.com
•
www.bpo.org
•
www.techmahindrabpo.com
•
www.googlesearchengine.com
•
www.bpoindia.org
109
ANNEXURES
QUESTIONNAIRE Name
:
_____________________
Qualification
:
_____________________
Designation
:
_____________________
1 What are the reasons which are prompting you to leave? 1. High Higher er Ed Educ ucat atio ion n 2. Pers Person onal al Reas Reason onss 3. Dissat Dissatisf isfact action ion with with pay/b pay/benef enefits its 4. Problems Problems with with reportin reporting g manager manager (relocati (relocation, on, health, health, marriage marriage etc.) etc.)
1. Dissat Dissatisf isfact action ion with inducti induction/ on/tra traini ining ng 2. Dissat Dissatisf isfact action ion with with working working condit condition ionss 3. Inadequate Inadequate career growth/deve growth/developmen lopmentt opportuniti opportunities es 4. Lack Lack of reward reward & recogn recogniti ition on opportu opportunit nities ies 5. Any other other reas reasons ons(Pl (Pleas easee speci specify) fy) 2 In which areas are improvements required to be done to change the perceptions of people about the organisation? 1. Improvement Improvementss in in organisati organisational onal policies/pr policies/practices actices 2. Improvement Improvementss in in HR policies/gu policies/guideli idelines/pr nes/practic actices es 3. Improvement Improvementss in servic services es like like transport transport,, cafeteria cafeteria etc.
110
4. Improv Improveme ements nts in commun communica icatio tion n channel channelss with with team team leader leaders/m s/manag anagers ers/Ce /Centr ntree Head 5. Improvement Improvementss in in resour resources/m ces/materi aterials/i als/infras nfrastruct tructure ure 6. Any other other area areass (Ple (Please ase specif specify) y) Please specify the improvements which you feel are required in the above areas in the space given below 3 Did you find the training adequate? If yes why? If no why? 4 Did you find the induction adequate? If yes why? If no why? 5 To what extent on a scale of 1 - 10 would you rate the leadership qualities of your reporting manager? Rating
10
9
8
7
6
5
4
3
2
1
1. Give Give one practi practice ce you liked liked the the best best and why 2. Give Give one practi practice ce you liked liked the the least least and and why why 6 What circumstances could have prevented your departure from the company? 7 Would you recommend this company to your family/friends? 1. If ye yes wh why? 2. If no why? Please let us know the major attracting factor in the new organisation you propose to join. 111
Any other comments/suggestions which you would like to make
112
