A SYNOPSIS ON Employee Retention IN INDIAN SCENARIO

Submitted In the Partial Fulfillment of the Requirement for the Award of Two Year Full Time Programme

MASTER OF BUSINESS ADMINISTRATION

(2011-2013)

SUBMITTED TO Prof. ((Dr.) D.N.Kakkar Head MBA IET, Lucknow

SUBMITTEDBY Praveen kumar MBA 4TH SEM. Roll No. 1105270036

INSTITUTE OF ENGINEERING & TECHNOLO

EXECUTIVE SUMMARY The retention of knowledge worker has become extremely critical for the success of a business organization in the present scenario especially in the service sector with lot of people interface. HR department has to play a key role in designing the policies, practices and strategies, which can enable an organization to retain the human resources contributing significantly to the business. The present study examines the phenomenon of Employee Retention in the ITeS sector in the City of Lucknow, Kanpur and in order to develop appropriate strategies, which can help the organizations in this sector to retain their valuable talent. The major objectives of the research are to study: employee retention strategies followed in the ITeS industry in the Tri-city of Lucknow and Kanpur; significance of select HR practices in the attainment of job satisfaction amongst the employees of the industry; extent of employee attrition prevalent; significance of individual, organizational and industry related factors in determining employee retention; correlation between job satisfaction and employee retention; prevalence of Talent Management System and identify different strategies adopted to reduce the monotony of work for the executive positions.

EMPLOYEE RETENTION Employee Retention refers to retaining the employee in the company. This is done either directly or indirectly in the company. An employee can be directly retained when a company signs a legal Bond with the employees for a certain period of time. This might reduce the attrition rate to an extent but increases the Recruiting rate of keeping the position vacant for a long time. Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Employee retention is a systematic effort by employers to create & foster an environment that encourages current employees to remain employed by having policies &practices in place that address their diverse needs. Retention is the process for members or volunteers remain active with the organization. Retention is not a particularly formal process. Instead it focuses on maintaining a welcome environment, member morale, and organizational process.

Thus, Employee Retention is a systematic and organized effort by the management of an organization to retain the skilled and competent manpower acquired thereof.

OBJECTIVES

To determine the significance of select HR practices in the attainment of job satisfaction amongst the employees of the industry. To study the significance of different: individual, organizational and industry related factors in determining the employee retention. To examine the correlation between job satisfaction and employee retention in the industry. To identify the different strategies adopted by the ITeS industry to reduce the monotony of work for the executive positions.

RESEARCH METHODOLOGY

RESEARCH DESIGN Research Design is a systematic planning, organizing & executing a research project within specified time limit & resource allocation.

After deciding the basic aspects of research project, example- formulating research problem, objectives of research, data requirement, sample design & before the commencement of work of research project, the researcher has to prepare research design. The research work will be conducted as per the research design prepared. It is logical & systematic outline of research project prepared for directing, guiding & controlling a research work. This research is DESCRIPTIVE in nature as it deals in exploring customer satisfaction.

DATA COLLECTION METHOD

Data is collected mainly through two methods. They are as follows:i. Primary Data ii. Secondary Data. This report is mainly based on secondary data. Secondary data Secondary data has been collected from various books and internet. The articles on internet helped a lot to understand the information. ANALYSIS TOOL The statistical tools for analysis used in this report are Average, percent and Ratios. The whole report has been prepared by using Microsoft office 2007.

CONCLUSIONS

The expected conclusions are as follows 1. A wide range of Employee Retention strategies have been employed in different organizations to retain their manpower and they vary from one organization to another. 2. Employee Retention strategies can be broadly classified into two categories i.e. monetary and nonmonetary strategies. Although, majority of the organizations are employing the monetary strategies such as Performance Linked Incentives, Rewards, Increment in Salary; yet good number of innovative non-monetary practices are also being implemented to retain the manpower. These practices include Job Rotation, Job Enrichment, Exit Interviews, Participation in Management, Public Recognition of Achievements etc. 3. Initial handholding is critical for retaining the manpower in this industry. Therefore, the respondent organizations were observed to be closely monitoring and tracking the performance of the new employees, providing them with weekly feedback and ensuring a friendly environment. 4. It has been found statistically that as the employee gains more and more experience of working in this sector, the probability of his attrition rises significantly. On the basis of the frequency distribution, Age and Educational Qualifications were also reported to be relatively significant factors affecting the employee retention in this industry. Contrary to the prevalent belief, Marital Status was reported to be as highly insignificant factor by one-third of the respondents. 5. The provision of Fair and Competitive salaries and Performance related Incentives emerged as the leading factors of Employee Retention in the present study on the basis of the frequency distribution. The non-monetary factors of Organizational Values and Beliefs also emerged as the other leading factors of Employee Retention. 6. All the select ITeS organizations conduct Exit Interviews. Around three-fourth of the respondents believe in the utility of Exit Interviews as a tool to reduce Employee Attrition and improve Employee Retention. Thus, it can be inferred that Exit Interviews is a highly effective tool for improving the level of Employee Retention. 7. Majority of the organizations reported that they have put in specific women related practices in order to retain the female employees. The provision of Fair and Equitable Treatment as well as Security at Work Place were reported as the most significant practices implemented by the respondent organizations for retaining their female work force. Provision of Concession in the Number of Night Shifts for the women employees was not felt to be of greater significance in relation to the other factors that were examined in the present study.

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