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SUMMER TRAINING PRO1ECT REPORT

ON
RETENTION MANAGEMENT SYSTEM WITH RESPECT TO
Submitted in partial fulfillment of the requirements
for the degree of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED TO
Department of Management Studies
Prin. L.N. Welingkar Institute of Management Development &
reserach
SUBMITTED BY
SNEHA CHAWLA
PGDM-DLP / HB
Roll No DPGD/!L"#/$#%&

PRIN. L.N. WELINGKAR INSTITUTE OF MANAGEMENT
DEVELOPMENT AND RESEARCH
"
Year of Submission : 2014
#
PLAGIARISM DECLARATION CERTIFICATE
'o the best of m( )no*ledge and belief+ this Summer training Pro,e-t Report is m(
o*n *or)+ all sour-es ha.e been properl( a-)no*ledged+ and the report -ontains no
plagiarism
/ ha.e not pre.iousl( submitted this *or) or an( .ersion in full or part of it+ for
assessment in an( other uni.ersit( or institution for an( degree or diploma program
/ a-)no*ledge that this Summer 'raining Pro,e-t Report ma( be transferred and stored
in a database for the purposes of data-mat-hing to help dete-t plagiarism
Student Name
SNEHA CHAWLA
##$"#$"%
0
Company`s Certificate
%
PRIN. L.N. WELINGKAR INSTITUTE OF MANAGEMENT
DEVELOPMENT & RESEARCH
DEPARTMENT OF MANAGEMENT STUDIES
CERTIFICATE
'his is to -ertif( that Ms. Sneha Chawla has su--essfull( -ompleted the Summer
'raining Pro,e-t Report titled 'Retention Management System with respect to Tech
Mahindra Ltd.1 from 20.11.2013 to 20.01.2014, as the partial fulfillment of the
requirement for the a*ard of degree of Masters of Business Administration (M.B.A.)
b( Mahama(a 'e-hni-al 2ni.ersit( during bat-h 3Bat-h (ear4
Signature of HOD
Name :
Designation:

5

ACKNOWLEDGEMENT
'he authorship of a monograph is usuall( attributed to one person but a report on the
/nternship or a pro,e-t *or) li)e this one is a ,oint affair / am indebted to all *ho ha.e
been of great help to me in doing and *riting this pro,e-t report
6irstl(+ / am than)ful and e7press m( gratitude to Mr. Chandrakant ,(Project Guide)
Senior Manager 3HR4+ 'e-h Mahindra Ltd for his .aluable guidan-e and support at all
time and pro.ided me the best opportunit( to -ompleted m( summer training pro,e-t
*ith an esteemed organi8ation
/ am also grateful and e7tend m( than)s to Sabyascahi Banarjee 3H9D4 for his able
guidan-e and support at all time
Spe-ial regard and greatest appre-iation is reser.ed for all the :7e-uti.es and :mplo(ees
of Tech Mahindra Ltd. for their .aluable guidan-e and support at all time
/ am pleased to sa( that the *hole report is ,ust the presentation of the fa-ts that ha.e
been found during the pro,e-ts through different sour-es and its ea-h senten-e is an e7a-t
representation of the information obtained and the anal(sis thereof
/ hope that / ha.e manifested m( sin-ere attempts to represent all the information and
other things to the best of abilit(
SNEHA CHAWLA
MB; 3#$"#-"%4
Roll No DPGD/!L"#/$#%&
&
TABLE OF CONTENTS
PREFACE
INTRODUCTION
COMPANY PROFILE
LITERATURE REVIEW
OB1ECTIVES OF THE STUDY
RESEARCH METHODOLOGY
GRAPHICAL DATA INTERPRETATIONS
FINDINGS
RECOMMENDATIONS
SUGGESTIONS
CONCLUSIONS
- BIBLIOGRAPHY
- QUESTIONNAIRE
<
PREFACE
'e-h Mahindra is a global s(stems integrator and business transformation -onsulting
firm fo-used on the -ommuni-ations industr( =ith the -on.ergen-e of media and
tele-om+ the -hanging lands-ape of the tele-om industr( is be-oming e7tremel(
-ompetiti.e :mplo(ee retention at 'e-h Mahindra is a pro-ess in *hi-h the emplo(ees
are en-ouraged to remain *ith the organi8ation for the ma7imum period of time or until
the -ompletion of the pro,e-t :mplo(ee retention is benefi-ial for the organi8ation as
*ell as the emplo(ee :mplo(ees toda( are different 'he( are not the ones *ho don>t
ha.e good opportunities in hand ;s soon as the( feel dissatisfied *ith the -urrent
emplo(er or the ,ob+ the( s*it-h o.er to the ne7t ,ob /t is the responsibilit( of the
emplo(er to retain their best emplo(ees /f the( don>t+ the( *ould be left *ith no good
emplo(ees
; good emplo(er should )no* ho* to attra-t and retain its emplo(ees Most emplo(ees
feel that the( are *orth more than the( are a-tuall( paid 'here is a natural disparit(
bet*een *hat people thin) the( should be paid and *hat organi8ations spend in
-ompensation =hen the differen-e be-omes too great and another opportunit( o--urs+
turno.er -an result Pa( is defined as the *ages+ salar(+ or -ompensation gi.en to an
emplo(ee in e7-hange for ser.i-es the emplo(ee performs for the organi8ation Pa( is
more than ?dollars and -ents@? it also a-)no*ledges the *orth and .alue of the human
-ontribution =hat people are paid has been sho*n to ha.e a -lear+ reliable impa-t on
turno.er in numerous studies :mplo(ees -omprise the most .ital assets of the -ompan(
/n a *or) pla-e *here emplo(ees are not able to use their full potential and not heard
and .alued+ the( are li)el( to lea.e be-ause of stress and frustration /n a transparent
en.ironment *hile emplo(ees get a sense of a-hie.ement and belongingness from a
A
health( *or) en.ironment+ the -ompan( is benefited *ith a stronger+ reliable *or)-for-e
harboring bright ne* ideas for its gro*th
B
INTRODUCTION
;s per philosophi-all(+ emplo(ee retention is important@ in almost all -ases+ it is
senseless to allo* good people to lea.e (our organi8ation =hen the( lea.e+ the( ta)e
*ith them intelle-tual propert(+ relationships+ in.estments 3in both time and mone(4+ an
o--asional emplo(ee or t*o+ and a -hun) of (our future :mplo(ee Retention Strategies
helps organi8ations pro.ide effe-ti.e emplo(ee -ommuni-ation to impro.e -ommitment
and enhan-e *or)for-e support for )e( -orporate initiati.es =e also pro.ide full
support for (our mar)eting--ommuni-ation efforts b( helping (ou build -ustomer
lo(alt( b( distinguishing and positioning (our organi8ation>s unique produ-ts and
ser.i-es in toda(>s -ro*ded mar)etpla-e
HUMAN RESOURCE MANAGEMENT
HRM is the strategi- and -oherent approa-h to the of management an organi8ation1s
most .alued assets - the people *or)ing there *ho indi.iduall( and -olle-ti.el(
-ontribute to the a-hie.ement of the ob,e-ti.es of the business 'he terms ?human
resour-e management? and ?human resour-es? 3HR4 ha.e largel( repla-ed the term
?personnel management? as a des-ription of the pro-esses in.ol.ed in managing people
in organi8ations Human Resour-e management is e.ol.ing rapidl( Human resour-e
management is both an a-ademi- theor( and a business pra-ti-e that addresses the
theoreti-al and pra-ti-al te-hniques of managing a *or)for-e
'he Human Resour-es Management 3HRM4 fun-tion in-ludes a .ariet( of a-ti.ities+ and
)e( among them is de-iding *hat staffing needs (ou ha.e and *hether to use
independent -ontra-tors or hire emplo(ees to fill these needs+ re-ruiting and training the
best emplo(ees+ ensuring the( are high performers+ dealing *ith performan-e issues+ and
"$
ensuring (our personnel and management pra-ti-es -onform to .arious regulations
;-ti.ities also in-lude managing (our approa-h to emplo(ee benefits and -ompensation+
emplo(ee re-ords and personnel poli-ies 2suall( small businesses ha.e to -arr( out
these a-ti.ities themsel.es be-ause the( -an1t (et afford part- or full-time help Ho*e.er+
the( should al*a(s ensure that emplo(ees ha.e -- and are a*are of -- personnel poli-ies
*hi-h -onform to -urrent regulations 'hese poli-ies are often in the form of emplo(ee
manuals+ *hi-h all emplo(ees ha.e HRM is seen b( pra-titioners in the field as a more
inno.ati.e .ie* of *or)pla-e management than the traditional approa-h /ts te-hniques
for-e the managers of an enterprise to e7press their goals *ith spe-ifi-it( so that the(
-an be understood and underta)en b( the *or)for-e and to pro.ide the resour-es needed
for them to su--essfull( a--omplish their assignments ;s su-h+ HRM te-hniques+ *hen
properl( pra-ti-ed+ are e7pressi.e of the goals and operating pra-ti-es of the enterprise
o.erall HRM is also seen b( man( to ha.e a )e( role in ris) redu-tion *ithin
organi8ations 'here is a long-standing argument about *here HR-related fun-tions
should be organi8ed into large organi8ations+ eg+ ?should HR be in the 9rgani8ation
De.elopment department or the other *a( aroundC?
'he HRM fun-tion and HRD profession ha.e undergone tremendous -hange o.er the
past #$-0$ (ears Man( (ears ago+ large organi8ations loo)ed to the ?Personnel
Department+? mostl( to manage the paper*or) around hiring and pa(ing people More
re-entl(+ organi8ations -onsider the ?HR Department? as pla(ing a ma,or role in staffing+
training and helping to manage people so that people and the organi8ation are
performing at ma7imum -apabilit( in a highl( fulfilling manner
""
COMPANY PROFILE
'e-h Mahindra is a global s(stems integrator and business transformation -onsulting
firm fo-used on the -ommuni-ations industr( =ith the -on.ergen-e of media and
tele-om+ the -hanging lands-ape of the tele-om industr( is be-oming e7tremel(
-ompetiti.e ;s -ompanies rapidl( stri.e to gain a -ompetiti.e ad.antage+ 'e-h
Mahindra helps -ompanies inno.ate and transform b( le.eraging its unique insights+
differentiated ser.i-es and fle7ible partnering models 'his has helped our -ustomers
redu-e operating -osts and generate ne* re.enue streams Re-ogni8ing that margins
from -onne-ti.it( are rapidl( falling and that future gro*th in re.enues and margins *ill
onl( -ome from ne* appli-ations+ -ontent and ser.i-es+ operators toda( are bus(
addressing business opportunities re.ol.ing around Dommer-e+ Dontent+ Don.ergen-e
and Dustomer :7perien-e to gain a sustainable Dompetiti.e ;d.antage 6or o.er t*o
de-ades+ 'e-h Mahindra has been the -hosen transformation partner for *ire line+
*ireless and broadband operators in :urope+ ;sia-Pa-ifi- and North ;meri-a Ma,orit(
o*ned b( Mahindra E Mahindra+ one of the 'op "$ industrial houses in /ndia+ in
partnership *ith British 'ele-ommuni-ations pl- 3B'4+ *orld>s leading -ommuni-ations
ser.i-e pro.ider+ 'e-h Mahindra has gro*n rapidl( to be-ome the 5th largest soft*are
e7porter in /ndia and the first largest tele-om soft*are pro.ider from /ndia
'he tele-om soft*are pro.ided b( 'e-h Mahindra -an be broadl( -lassified into t*o
formsF
'ele-om Ser.i-e Pro.ider
'ele-om :quipment Manufa-turer
"#
'he soft*are industr( has made a stead( gro*th in the past # G 0 (ears *ith the top-tire
-ompetitors gro*ing at the rate of 05H annuall( 'he /' se-tor of 'e-h Mahindra is
sho*ing an impressi.e gro*th 'he general a.erage re.enue of the -ompan( is
estimated to be Rs "# billion 32S I#&A4 o.er the last si7 (ears 6urther+ the latest
finan-ial estimate of the -ompan( has alread( -rossed Rs #B billion
6or o.er t*o de-ades+ 'e-h Mahindra has been the -hosen transformation partner for
*ireline+ *ireless and broadband operators in :urope+ ;sia-Pa-ifi- and North ;meri-a
Ma,orit( o*ned b( Mahindra E Mahindra+ one of the 'op "$ industrial houses in /ndia+
in partnership *ith British 'ele-ommuni-ations pl- 3B'4+ *orld>s leading
-ommuni-ations ser.i-e pro.ider+ 'e-h Mahindra has gro*n rapidl( to be-ome the 5th
largest soft*are e7porter in /ndia and the first largest tele-om soft*are pro.ider from
/ndia
9.er #5+$$$ professionals ser.i-e -lients a-ross the tele-om e-o-s(stem+ from our global
net*or) of de.elopment -entres and sales offi-es a-ross ;meri-as+ :urope+ Middle-east+
;fri-a and ;sia-Pa-ifi- Dommitted to qualit(+ 'e-h Mahindra adds .alue to -lient
businesses through *ell-established methodologies+ tools and te-hniques ba-)ed b( its
stringent qualit( pro-esses 'e-h Mahindra is /S9 B$$"F#$$$ -ertified and is assessed at
S:/-DMM/ Le.el 5 'e-h Mahindra has also been a*arded the /S9 #$$$$-" 3/' Ser.i-e
Management standard4 and /S9 #<$$" 3Se-urit( Management standard4 -ertifi-ation for
its de.elopment -enters a-ross /ndia and 2J 'e-h Mahindra is -ertified at PDMM
Le.el 5 for its people--are pra-ti-es and is the third -ompan( in the *orld to ha.e been
appraised for SS:-DMM Le.el 0
"0
MANAGEMENT TEAM
The management team of Tech Mahindra are:

Anand Mahindra, Chairman of Tech Mahindra
Anand Mahindra 3Born on " Ma(+ "B554 is the Ki-e Dhairman and Managing Dire-tor
of one of /ndia>s largest -ompanies+ Mahindra E Mahindra He no* resides in his home
to*n Mumbai Mahindra returned to /ndia and ,oined Mahindra 2gine Steel Dompan(
3M2SD94 *here he be-ame President and Deput( Managing Dire-tor in "BAB During
this time he initiated the Mahindra Group>s di.ersifi-ation into the ne* business areas of
real estate de.elopment and hospitalit( /n "BB"+ he *as appointed Deput( MD of
Mahindra E Mahindra Ltd He be-ame the Managing Dire-tor in "BB< and too) on the
additional responsibilit( of Ki-e Dhairman in #$$0 2nder ;nand Mahindra+ the
-ompan( laun-hed /ndia>s best lo.ed S2K+ the S-orpio+ *hi-h toda( has gone global
He has re-entl( been ran)ed amongst the most influential men E *omen in Mumbai b(
Dail( Ne*s and ;nal(sis Mahindra is the -o-founder of the Har.ard Business S-hool
;sso-iation of /ndia+ an asso-iation dedi-ated to the promotion of professional
management in /ndia 'he asso-iation has gro*n substantiall( o.er the (ears He is the
-o--hair at the =orld :-onomi- 6orum at Da.os Mahindra is a Dire-tor of 'he National
Sto-) :7-hange of /ndia Limited appointed under the ?Publi- Representati.es? -ategor(
He is the Dhairman of National Safet( Doun-il of /ndia He is the Do-Dhairman of the
/nternational Doun-il of the ;sia So-iet(+ Ne* Lor)
"%
Vineet Nayyar, Vice Chairman
;n a--omplished leader+ Sir Kineet Na((ar has led se.eral organi8ations a-ross
industries+ -reating high performan-e teams and su--essful businesses /n a -areer
spanning o.er %$ (ears+ he has *or)ed *ith the Go.ernment+ international multilateral
agen-ies and the -orporate se-tor 3both publi- and pri.ate4 Kineet holds a Master>s
degree in De.elopment :-onomi-s from =illiams Dollege+ Massa-husetts

Milind Kulkarni, Chief Financial Officer
Milind Jul)arni is responsible for the 6inan-e+ Legal and Se-retarial fun-tions at 'e-h
Mahindra He has been Manager ;--ounts at Dadbur( pl- 3No.ember "BA#-9-tober "BAB+
<(ears e7perien-e4 Most re-entl(+ he *as the Senior Ki-e president+ 6inan-e for 'e-h
Mahindra from 9-tober #$$B-!une #$"0 Mr Milind has e7tensi.e e7perien-e -o.ering
a-quisitions+ di.estments and formation of ,oint .entures ; -ommere-e graduate in
;--ountan-( from M L Dahanu)ar Dollege of Dommer-e and a qualified Dhartered
"5
;--ountant+ Milind has as man( as #" s)ills li)e Business ;nal(sis+ M/S+ Mergers+ Due
Diligen-e+ Business Strateg( 6ore-asting+ 6inan-ial Reporting+ Business Planning+ !oint
Kentures+ ;--ounting+ Strategi- Planning+ Business Pro-ess Re-engineering+ 6inan-ial
Modeling+ 'eam Management+ Dontra-t Negotiation+ Mergers E ;-quisitions+ 6inan-ial
;nal(sis+ ;nal(sis+ Budgets+ /nternal ;udit+ Managerial 6inan-e
Sujit Baksi, President - Corporate Affairs
Su,it has o.er 0$ (ears of e7perien-e in the areas of people management+ operations
management and -orporate strateg( ;t 'e-h Mahindra+ Su,it leads the HR+ Resour-e
Management Group+ /nfrastru-ture fun-tions in-luding 'e-hni-al /nfrastru-ture
Management+ 'raining 3'e-hni-al E Beha.ioral4+ Managed Ser.i-es and the
;dministrati.e fun-tions Su,it is a graduate from Presiden-( Dollege+ Jol)ata ha.ing
-ompleted his post graduate spe-iali8ation in Personnel Management from MLR/+
!amshedpur+
"&
C.P. GURNANI, CEO
DP Gurnani 3popular as NDP> *ithin his peer group4+ is the Dhief :7e-uti.e 9ffi-er and
Managing Dire-tor of 'e-h Mahindra DP pla(ed a pi.otal role in the four (ear
transformational ,ourne( of the erst*hile Mahindra Sat(am before it merged *ith 'e-h
Mahindra ;n a--omplished business leader *ith e7tensi.e e7perien-e in international
business de.elopment+ start-ups and turnarounds+ ,oint .entures+ mergers and
a-quisitions+ DP in man( *a(s led 'e-h Mahindra1s transformation ,ourne(+ *here he
-ontributed signifi-antl( to the -ompan(1s strateg( and philosoph( His inimitable st(le
of leadership -ombined *ith his sharp fo-us on -ustomer e7perien-e helped Mahindra
Sat(am and 'e-h Mahindra to emerge as one of the leading pro.iders in their respe-ti.e
-ompeten-ies - /' Ser.i-es and 'ele-om Solutions to the global tele-om e-os(stem /n a
-areer spanning 0# (ears+ he has held se.eral leading positions *ith HDL He*lett
Pa-)ard Limited+ Perot S(stems 3/ndia4 Limited and HDL Dorporation Ltd ;n
outstanding people1s manager+ DP has an entrepreneurial st(le of management that is a
blend of enthusiasm and d(namism He tends to fo-us on people1s strengths to bring out
the best in them 1=or) hard and pla( hard1 is his motto and he applies it to all aspe-ts of
his life *ith -omplete passion ; -hemi-al engineering degree from the National
/nstitute of 'e-hnolog(+ Rour)ela+ he is a distinguished and a-ti.e alumnus of the
/nstitute
"<

"A
VISION & MISSION OF TECH MAHINDRA LTD.
Vision: 'o be the leading global soft*are solution pro.ider to the tele-om industr(
Mission: 'o be the global leader in 9utsour-ing Ser.i-es to the 'ele-om industr(+
building on our te-hnologies+ -ompeten-ies and -ustomer interests+ and -reating .alue
for our shareholders and -ustomers
The Values that drives Tech Mahindra: 'e-h Mahindra is fo-used on -reating
sustainable .alue gro*th through inno.ati.e solutions and unique partnerships 9ur
.alues are at the heart of our business reputation and are essential to our -ontinued
su--ess =e foster an en.ironment to instil these .alues in e.er( fa-et of our
organi8ation
Dustomer first+ Good -orporate -iti8enship+ Professionalism+ Dommitment to
qualit(+ Dignit( of the indi.idual
Services offered by Tech Mahindra
Business Donsulting+ S(stems /ntegration+ ;ppli-ation Support and Maintenan-e
Managed Ser.i-es
;s a part of its mature qualit( pro-esses+ 'e-h Mahindra uses *ell defined pro-ess
measurements to monitor the qualit( of solutions deli.ered and ensure -ontinuous
impro.ement =ith a strong fo-us on pro-ess management+ 'e-h Mahindra>s Business
Management S(stem 3BMS4 integrates business needs and industr( best pra-ti-es to
deli.er ser.i-es that -onstantl( impro.eF
Dustomer Satisfa-tion
"B
Produ-ti.it( and D(-le-'ime
Oualit( of Solutions and Ser.i-es
Integration of Initiatives
'e-h Mahindra1s BMS is designed to de.elop solutions that meet -lient spe-ifi-ations in
a--ordan-e *ith statutor( and other industr(-*ide standards 'e-h Mahindra>s qualit(
leadership -onforms to *orld--lass qualit( standards and models 'e-h Mahindra is /S9
B$$"F#$$$ -ertified and is assessed at S:/-DMM/ Le.el 5 'e-h Mahindra has also been
a*arded the /S9 #$$$$-" 3/' Ser.i-e Management standard4 and /S9 #<$$" 3Se-urit(
Management standard4 -ertifi-ation for its de.elopment -entres a-ross /ndia and 2J
'e-h Mahindra is -ertified at P-DMM Le.el 5 for its people--are pra-ti-es and is the
third -ompan( in the *orld to ha.e been appraised for SS:-DMM Le.el 0
Tech Mahindra's Service Delivery Framework - mASTER
Based on pro.en methodologies and industr( best pra-ti-es+ 'e-h Mahindra has defined a
holisti- transition pro-ess frame*or) - m;S':RP - for effe-ti.e ser.i-e deli.er( to
-ustomers m;S':RP offers a methodolog( for planning+ managing+ deli.ering and
operating -omple7 programs through fi.e defined phases as depi-ted belo*F
'he m;S':RP methodolog( -o.ers a broad range of a-ti.ities that are stru-tured
around qualit( gates and deli.erables+ thus ensuring a predi-table and measurable
business out-ome and -onsistent qualit( of deli.erables
MILESTONES
"BA& - /n-orporation in /ndia
"BA< - Dommen-ement of Business
#$
"BB0 - /n-orporation of MB' /nternational /n-+ the first o.erseas subsidiar(
"BB% - ;*arded the /S9 B$$" -ertifi-ation b( BKO/
"BB5 - :stablished the 2J bran-h offi-e
#$$" - /n-orporated MB' GmbH+ German( in-orporated Re--ertified to /S9
B$$"F"BB% b( BKO/
#$$# - ;ssessed at Le.el 5 of S:/ DMM b( JPMG /n-orporated MB' Soft*are
'e-hnologies Limited+ Singapore
#$$0 - Re--ertified to /S9 B$$"F#$$$ b( R='2K
#$$& - Name -hanged to 'e-h Mahindra Limited ;ssessed at Le.el 5 of S:/
People-DMM 3P-DMM4 b( O;/ /ndia Raised Rs%&5 billion 3I"$$ million4
from a hugel( su--essful /P9 to build a ne* fa-ilit( in Pune+ to house about
B+$$$ staff 6ormed a !K *ith Motorola /n- under the name Dan.as
#$$< - ;-quired poli-( Net*or)s Pri.ate Limited Laun-hed the 'e-h Mahindra
6oundation to address the needs of the underpri.ileged in our so-iet(+ espe-iall(
-hildren
#$$B -'e-h Mahindra *ins bid for Sat(am 'e-h Mahindra has *on the bid for
Sat(am Domputer Ser.i-es
#"
AWARDS & RECOGNITIONS
Ran)ed Q" in 'ele-om Soft*are -ategor( b( Koi-e E Data+ #$$B 3KED"$$
Ran)ing4
Ran)ed ""th Largest '9MS .endor b( Gartner in ?Mar)et ShareF 'ele-oms
9perations Management S(stems G =orld*ide+ #$$&-#$$A? Ma( #$$B
/n the Leaders Dategor( in 1'he #$$B Global 9utsour-ing "$$1 3/;9P1s ;nnual
Listing of the =orld1s Best 9utsour-ing Ser.i-e Pro.iders4
Deloitte 'e-hnolog( 6ast 5$$ ;P;D #$$A
Deloitte 'e-hnolog( 6ast 5$ /ndia #$$A
;*ard for :7-ellen-e in 'raining 3:mplo(er Branding ;*ards #$$A-#$$B4
1Best 9.erall Re-ruiting E Staffing 9rgani8ation of the Lear ;*ard1 3R;SB/D
;*ards #$$B4
;*ard for Managing Health at =or) 3:mplo(er Branding ;*ards #$$A-#$$B4
;*ard for :7-ellen-e in 'raining 3:mplo(er Branding ;*ards #$$A-#$$B4
Business=ee) ;*ard for ;sia>s Best Performing Dompanies+ #$$A
Ran)ed #nd in 'ele-om Soft*are pro.iders of /ndia b( Koi-e E Data+ #$$A
3KED"$$ Ran)ing4
RGro*th :7-ellen-e ;*ardS b( 6rost E Sulli.an+ #$$A
&th Largest Soft*are Ser.i-es Dompan( in /ndia 3N;SSD9M #$$A4
"$th Largest /'-BP9 :mplo(ers+ 6L $<-$A 3N;SSD9M #$$A4
;*ard for RBest Start-up Dompan(S at Mobile Dontent ;*ards E Donferen-e
#$$A 3MD;$A4 to Dan.asM
##
;*ard in RLargest Re.enue Dategor(S of R/' and /'eS 3e7-luding Hard*are4
Se-torS b( DEB G :DGD /ndian :7porters :7-ellen-e ;*ards+ #$$A
Ran)ed "#th Largest '9MS .endor b( Gartner in ?Mar)et ShareF 'ele-oms
9perations Management S(stems G =orld*ide+ #$$&-#$$<? ;pril #$$A
?Best Billing Solution? Dategor( at ?Billing and 9SS =orld 3B/9SS4 :7-ellen-e
;*ards #$$A?+ ;pril #$$A
'he Brand Leadership ;*ard b( the ;sia Brand Dongress+ #$$A
1Best 9.erall Re-ruiting E Staffing 9rgani8ation of the Lear ;*ard1 3R;SB/D
;*ards #$$A4
/n the Leaders Dategor( in 1'he #$$A Global 9utsour-ing "$$1 3/;9P1s ;nnual
Listing of the =orld1s Best 9utsour-ing Ser.i-e Pro.iders4
19rgani8ation *ith the most inno.ati.e HR pra-ti-es ;*ard1 3;sia Pa-ifi- HRM
Global HR e7-ellen-e ;*ard #$$<4 0rd largest BSS S(stems /ntegrator and 5th
largest BSS Kendor 3Gartner-Dataquest+ =orld =ide ;nal(sis #$$$-#$$&+
published in #$$<4
Produ-t /nno.ation ;*ard for :nterprise DRM 36rost E Sulli.an ;sia /D'
;*ards #$$<4
Kerti-al Gro*th Leadership in 'ele-om Soft*are 36rost E Sulli.an ;sia /D'
;*ards #$$<4
'he :lite member of the Deloitte 'e-hnolog( 6ast 5$ /ndia 3#$$<4
'he Brand Leadership ;*ard b( the ;sia Brand Dongress+ #$$<
IT SERVICES AND TELECOM SOLUTIONS
#0
'e-h Mahindra is the global leader in deli.ering the end to end /' ser.i-es and solutions
'he -ompan( has "5$$$ professionals> ser.i-e -lients in .arious tele-om segments+
from .arious offshore de.elopment -enters in-luding < -ities in /ndia and 2J and "0
sales -enters in ;meri-as+ :urope and ;sia-Pa-ifi-
'he -ompan( integrates domain e7pertise in 9SS and Business Support S(stems
s(stems+ intelligent leadership and a global *or)for-e ad.antage to deli.er ser.i-es 'he
-ompan( has ser.i-e premium tele-om -ompanies *orld*ide
/' pro.ides a *ide .ariet( of ser.i-es ranging from /' strateg( and -onsulting to s(stem
integration+ design+ appli-ation de.elopment+ implementation+ maintenan-e and produ-t
engineering /t has a ri-h tele-om heritage+ dedi-ated to qualit(@ 'e-h Mahindra adds
.alue to -lient business pro-ess b( *ell-established methodologies+ tools and te-hniques
ba-)ed b( Oualit( 'e-h Mahindra is /S9 B$$"F#$$$ -ertified and is also a S:/-DMMi
Le.el 5 organi8ation 'e-h Mahindra is also BS<<BB -ertified at all de.elopment -enters
Ma,orit( o*ned b( Mahindra E Mahindra+ /ndia>s fifth largest -ommer-ial group+ in
partnership *ith B' Pl- 3B'4+ :urope>s se-ond largest tele-om ser.i-e pro.ider+ /t has
gro*n in a rapid *a( to attain the position the Ath largest soft*are e7porter in /ndia
Vision- To be the leading global software solutions provider to the telecom industry.
Mission Statement- 'o be the global leader in outsour-ing ser.i-es+ 'o the tele-om
industr(+ Building on our te-hnologies and -ompeten-ies+ ;nd -ustomer interests+ ;nd
-reating .alue for our share holders and -ustomers
THE VALUE THAT DRIVES TECH MAHINDRA
#%
'e-h mahindra is fo-ussed on -reating remar)able .alue gro*th through inno.ati.e
/-reati.e solutions and partnerships 'heir .alues are at the heart of their business /brand
name and are essential to their sustained su--ess the( foster an en.ironment to instill
these .alues in e.er( aspe-t of their organi8ation
" Dorporate -iti8enship
# Professional approa-h
0 Dustomer satisfa-tion first
% Dustomer -entri-it(
5 Dedi-ation to*ards qualit(
& 'he integrit( of indi.idual
Infrastructure
'e-h mahindra has se.en soft*are de.elopment -enters+ one in 2nited Jingdom and si7
in /ndia 3mumbai Dhennai+ pune+ Bangalore+ )ol)ata+ noida4 "0 regional offi-es spread
o.er 2J+ 2S;+ German( et-
Achievements
" /t is ran)ed b( N;SD9MM as the eight largest /' ser.i-es in -onte7t of e7port
re.enue
# 'he relationship *ith B' has gi.en an edge+ no* the( ha.e an established presen-e
in the :uropean mar)et+ the( ha.e gro*n in North ;meri-an mar)et *ith -lients
su-h as ;'E'+ and the( ha.e also -ome into pi-ture in south ;sian -ountries *ith
-lients in -ountries li)e 'hailand+ Mala(sia and /ndia
0 'heir re.enue gre* at the annual gro*th rate of #&H and their no of emplo(ees gre*
at an annual gro*th rate of #%H in #$$%-#$$&
#5
SERVICES
Solution integration- 'his is a )ind ser.i-e that enables -lient to identif(+ de.elop and
implement the most effe-ti.e solutions to their -hange needs/requirements 'here is
requirement of business pro-esses a-ross organi8ation>s entire .alue -hain of -ustomers+
partners+ suppliers and emplo(ees
Solution integration is crucial in different domains of organization due to different
factors:
" Multi - tas)ing s(stems for .arious domains
# Post mergers a-quisitions+ pro-ess E net*or)s need integration
0 Ne* produ-t implementations require integration/unifi-ation *ith other e7isting
s(stems
% /n-reased business .alue is demanded
5 /n.estment ma7imi8ation is ne-essar(
& 'here is a requirement to integrate *ith business partners+ suppliers+ -ustomers to
de-rease in.entor(
< 'here is a need to de-rease manual intera-tions/transa-tions
TECH MAHINDRA ADVANTAGE
" =orld leading tra-) re-ord in tele-om industr(
# ;ppli-ation outsour-ing e7perien-e is of t*o de-ades no*
0 'he -ompan( has fle7ible pro-edures
% 'he fo-us is on SL;>S that impro.es effi-ien-(
APPLICATION DEVELOPMENT AND MANAGEMENT
#&
Consulting
'he organi8ation offers -omplete range of -onsulting ser.i-es+ *hi-h is used to anal(8e
-lient>s business need to implement soft*are s(stems 'he -onstan-( is pro.ed in the
field of re G engineering solutions+ strategi- -ontrol
'he strategi- allian-e has gi.en edge to mar)et penetration and -ompetiti.eness in
emerging mar)ets 'his is also effe-ti.e in produ-t e.aluation
Global Managed Services
'he )e( to su--ess in -urrent s-enario is fo-us on -ore -ompeten-( Business toda( fa-es
in-reased net*or) -ompli-ations+ .aried band*idth needs+ and de-reased budgets and it
is found that traditional solutions to these -hallenges -auses distra-tion from their -ore
business strategies
9rgani8ations are therefore loo)ing at outsour-ing ser.i-es to a managed ser.i-e
pro.ider 'e-h Mahindra>s managed ser.i-es pro.ide an opportunit( to -ustomers to
outsour-e business and operations pro-ess+ high standard of qualit(+ a--ountabilit( is
assured it is -ost effe-ti.e and the ris) is lo* Global managed ser.i-es@ ; spe-iali8ed
team is -reated *hi-h has the e7pertise to manage an enabling infrastru-ture and pro-ess
BPO Services
'his is a logi-al e7tension of /' ser.i-es+ te-h Mahindra pro.ides an e#e pa-)age to its
tele-om -lients+ 'he global fa-ilities in -onte7t to outsour-ing is pro.ided
#<
HUMAN RESOURCES PROCESS AT TECHM
Personal administration 3P;4
Personal de.elopment 3PD4
Implementation process
'he pro,e-ts *hi-h are underta)en b( te-h Mahindra are done in follo*ing phasesF
Scoping
=hat needs implemented+ *hi-h sub modules are required be implemented+ some -lients
ma( not require finan-e management+ e7ample+ mar)eting people along *ith pro,e-t
manager do it
BP9 3B2S/N:SS PR9D:SS 9=N:R4 is the -lients emplo(ee *ho has )no*ledge of
the -lient business pro-esses probabl( a middle management e7e-uti.e+ it -ould more
than one+ -olle-tion of all the /S9 do-uments+ if -lient is /S9 -ertified+ reports and forms
at this stage and anal(8e ho* and *hen the reports /forms are generated+ =hat is the
sour-e of datathere is le.el G# training is done for BP9 so he is made a*are of all the
required transa-tions in S;P ;fter its -ompletion BP9 starts learning *ith the
-onsultants+ help more about S;P 'his is -ru-ial be-ause if there is a miss on an(
transa-tions the BP9 ma( negle-t some of business pro-esses *hi-h ma( arise laterit is
a good pra-ti-e to as) the BP9 to -onstru-t flo* -harts to understand business pro-ess
'he pro-esses are mapped to S;P Some pro-esses are not sure *hether the( are present
in S;P or not *e tr( to do a -onfiguration of those pro-esses+ and along *ith BP9+ BP9
in.ol.ement is needed as he be able to tell his needs better on-e the business modeling is
#A
a--omplished+ *e *ill also be made a*are the gaps bet*een as G is and to G be+ here
de-isions has to be made as to *hether an ;B;P de.elopment/s(stem modifi-ations is
needed or not and so on+ the BP9 in.ol.ement should be in.ol.ed and do-ument
e.er(thing
Business blue print
Here the as-is and to-be and gap anal(sis is understood 'his is the do-ument that is used
to perform the integration in the reali8ation phase
Realization phase
'he -onfiguration ta)es pla-e in the de.elopment ser.er 3there are three domains G
de.elopment+ qualit(+ produ-tion 'he master data format is being de-ided upon+ so that
BP9 is able to -olle-t the master data ;B;P spe-ifi-ations are deli.ered to forms
reports s(stems modifi-ations+ et-
Unit testing
BP9 and fe* )e( users are in.ol.ed to test the -onfiguration in the module /t is best to
test the BDDs that (ou need for uploading information at this stage+ so that there is
realisti- data and BDDs are tested
Integration testing
;fter unit testing is o.er then -onfiguration is mo.ed to the qualit( se.er+ *here testing
for all the fun-tions/domains is done b(BP9s and end user+ this helps to -he-) if an(
issue>s are there in -onte7t to integration bet*een .arious fun-tions+ on-e it is appro.ed
from the O; se.er -onfig is mo.ed to the produ-tion ser.er
#B
VALUABLE CLIENTS OF TECHM
Major clients of Tech Mahindra in ERP are:
" British tele-om
# ;'E'
0 Motorola
% Mahindra E Mahindra
5 M:; Bang)o)
Clients Testimonials
R/t has sho*n/maintained a .er( important role in B'>s strateg( and pro.ing to be
stronger partner /ndia is a .er( important mar)et for B'+ Business is gro*ing at fast
pa-e and / am proud to be a part of te-h mahindra>s se-ond gro*th phase here in ;sia
pa-ifi-S
BT GROUP
'a)ing 'M6 Datal(st initiati.e+ 'e-h Mahindra studied our ?;s /s? pro-esses to identif(
and anal(8e the Gaps b( ans*ering questions li)e+ *hat does e'9M mean to these
pro-esses+ *here -an *e find these pro-esses in the e'9M mapping+ et-C 'he 1'o Be1
pro-esses *ere built up b( using the e'9M business pro-ess frame*or)
'he -redit goes to 'e-h Mahindra for the e7-ellent support and for the good team*or)
=e *ill al*a(s loo) for*ard to *or) *ith 'e-h MahindraS
0$
LITERATURE REVIEW
:ffe-ti.e emplo(ee retention is a s(stemati- effort b( emplo(ers to -reate and foster an
en.ironment that en-ourages -urrent emplo(ees to remain emplo(ed b( ha.ing poli-ies
and pra-ti-es in pla-e that address their di.erse needs ; strong retention strateg(
be-omes a po*erful re-ruitment tool Retention of )e( emplo(ees is -riti-al to the long-
term health and su--ess of an( organi8ation /t is a )no*n fa-t that retaining (our best
emplo(ees ensures -ustomer satisfa-tion+ in-reased produ-t sales+ satisfied -olleagues
and reporting staff+ effe-ti.e su--ession planning and deepl( imbedded organi8ational
)no*ledge and learning :mplo(ee retention matters as organi8ational issues su-h as
training time and in.estment@ lost )no*ledge@ inse-ure emplo(ees and a -ostl( -andidate
sear-h are in.ol.ed Hen-e failing to retain a )e( emplo(ee is a -ostl( proposition for an
organi8ation Karious estimates suggest that losing a middle manager in most
organi8ations -osts up to fi.e times of his salar( /ntelligent emplo(ers al*a(s realise
the importan-e of retaining the best talent Retaining talent has ne.er been so important
in the /ndian s-enario@ ho*e.er+ things ha.e -hanged in re-ent (ears /n prominent
/ndian metros at least+ there is no dearth of opportunities for the best in the business+ or
e.en for the se-ond or the third best Retention of )e( emplo(ees and treating attrition
troubles has ne.er been so important to -ompanies /n an intensel( -ompetiti.e
en.ironment+ *here HR managers are poa-hing from ea-h other+ organisations -an either
hold on to their emplo(ees tight or lose them to -ompetition 6or gone are the da(s+
0"
*hen emplo(ees *ould sti-) to an emplo(er for (ears for *ant of a better -hoi-e No*+
opportunities abound
/t is a fa-t that+ retention of )e( emplo(ees is -riti-al to the long-term health and su--ess
of an( organisation 'he performan-e of emplo(ees is often lin)ed dire-tl( to qualit(
*or)+ -ustomer satisfa-tion+ and in-reased produ-t sales and e.en to the image of a
-ompan( =hereas the same is often indire-tl( lin)ed to+ satisfied -olleagues and
reporting staff+ effe-ti.e su--ession planning and deepl( embedded organisational
)no*ledge and learning
:mplo(ee retention matters+ as+ organisational issues su-h as training time and
in.estment+ -ostl( -andidate sear-h et-+ are in.ol.ed Hen-e+ failing to retain a )e(
emplo(ee is a -ostl( proposition for an( organisation Karious estimates suggest that
losing a middle manager in most organisations+ translates to a loss of up to fi.e times his
salar( 'his might be *orse for BP9 -ompanies *here fresh talent is intensi.el( trained
and indu-ted and then further groomed to the su--essi.e stages /n this s-enario+ the loss
of a middle manager -an often pro.e dear /n fa-t+ some reports suggest that attrition
le.els in /' -ompanies are as high as %$ per -ent 'he onl( *a( out is to de.elop
appropriate retention strategies 'hough BP9 industr( shoots ahead at %$ to 5$ per -ent
a (ear+ it is no* losing 05 to %$ per -ent of its 05$+$$$-odd emplo(ees as *ell
/n /ndia there are fe* se-tors *here the attrition le.el is mu-h larger -ompared to other
se-tors 6or e7ampleF /' se-tor and BP9 =here as there are organi8ations li)e ;ir
/ndia+ H;L+ DRD9+ B;RD *here the attrition is nearl( 5H or less than that :mplo(ee
0#
Retention Strategies helps organi8ations pro.ide effe-ti.e employee -ommuni-ation to
impro.e -ommitment and enhan-e *or)for-e support for )e( -orporate initiati.es
Employee retention is a process in which the employees are encouraged to remain in
the organization for the maximum period of time.
:mplo(ee Retention in.ol.es ta)ing measures to en-ourage -ompetent emplo(ee to
remain in the organi8ation for the ma7imum period of time Dorporate are fa-ing a lot
problem in emplo(ee retention these da(s Hiring )no*ledgeable people for the ,ob is
essential for an emplo(er But retention is e.en more important than hiring 'here is no
dearth of opportunities for a talented person 'here are man( organi8ations *hi-h are
loo)ing for su-h emplo(ees
/f a person is not satisfied b( the ,ob he is doing+ he ma( s*it-h o.er to some other
more suitable ,ob /n toda(>s en.ironment it be-omes .er( important for organi8ations
to retain their emplo(ees 'he reason ma( be personal or professional 'hese reasons
should be understood b( the emplo(er and should be ta)en -are of 'he organi8ations
are be-oming a*are of these reasons and adopting man( strategies for emplo(ee
retention
There are various HR issues the a corporate deals:
" :MPL9L:: '2RN9K:R
# ;''R/'/9N
'hese basi- needs other than routine and future HR tas)s are to be ta)en -are of on
Priorit( before it be-omes late
00
WHY RETENTION?
Je( emplo(ee retention is -riti-al to the long term health and su--ess of (our business
Managers readil( agree that retaining (our best emplo(ees ensures -ustomer satisfa-tion+
produ-t sales+ satisfied -o-*or)ers and reporting staff+ effe-ti.e su--ession planning and
deepl( imbedded organi8ational )no*ledge and learning emplo(ee retention matters
9rgani8ational issues su-h as training time and in.estment@ lost )no*ledge@ mourning+
inse-ure -o-*or)ers and a -ostl( -andidate sear-h aside+ failing to retain a )e( emplo(ee
is -ostl( Karious estimates suggest that losing a middle manager -osts an organi8ation
up to "$$ per-ent of his salar( 'he loss of a senior e7e-uti.e is e.en more -ostl(
:mplo(ee retention is one of the primar( measures of the health of the organi8ation
Losing -riti-al staff members means other people in the departments are loo)ing as *ell
:7it inter.ie*s *ith departing emplo(ees pro.ide .aluable information that -an used to
retain remaining staff
WHY PEOPLE LEAVE THEIR 1OBC
=ith retention being su-h a high priorit(+ *h( are people lea.ing organi8ationsC Some
literature suggests that people lea.e their ,obs for a *ide .ariet( of reasons+ in-ludingF
" 2nmet e7pe-tations
# /nappropriate fit for the role
0 La-) of fit *ith -ompan( -ulture
% La-) of suffi-ient opportunities for gro*th and ad.an-ement
5 /nadequate re-ognition and appre-iation
& Problems *ith a manager or super.isor
< Dissatisfa-tion *ith -ompensation
0%
A Stress
B La-) of *or)/life balan-e
"$ La-) of -onfiden-e in the -ompan( and/or leadership
RETENTION INVOLVES FIVE MA1OR THINGS:
9 Dompensation
9 :n.ironment
9 Gro*th
9 Relationship
9 Support
COMPENSATION
Dompensation -onstitutes the largest part of the emplo(ee retention pro-ess 'he
emplo(ees al*a(s ha.e high e7pe-tations regarding their -ompensation pa-)ages
Dompensation pa-)ages .ar( from industr( to industr( So an attra-ti.e -ompensation
pa-)age pla(s a -riti-al role in retaining the emplo(ees Dompensation in-ludes salar(
and *ages+ bonuses+ benefits+ prerequisites+ sto-) options+ bonuses+ .a-ations+ et- =hile
setting up the pa-)ages+ the follo*ing -omponents should be )ept in mindF
Salar( and monthl( *ageF /t is the biggest -omponent of the -ompensation pa-)age /t is
also the most -ommon fa-tor of -omparison among emplo(ees
IT INCLUDES:
Basi- *age
House rent allo*an-e
Dearness allo*an-e
05
CITY COMPENSATORY ALLOWANCE
Salar( and *ages represent the le.el of s)ill and e7perien-e an indi.idual has 'ime to
time in-rease in the salaries and *ages of emplo(ees should be done ;nd this in-rease
should be based on the emplo(ee>s performan-e and his -ontribution to the organi8ation
BonusF Bonuses are usuall( gi.en to the emplo(ees at the end of the (ear or on a
festi.al :-onomi- benefitsF /t in-ludes paid holida(s+ lea.e tra.el -on-ession+ et- Long-
term in-enti.esF Long term in-enti.es in-lude sto-) options or sto-) grants 'hese
in-enti.es help retain emplo(ees in the organi8ation1s startup stage Health insuran-eF
Health insuran-e is a great benefit to the emplo(ees /t sa.es emplo(ees mone( as *ell
as gi.es them a pea-e of mind that the( ha.e somebod( to ta)e -are of them in bad
times /t also sho*s the emplo(ee that the organi8ation -ares about the emplo(ee and its
famil( ;fter retirementF /t in-ludes pa(ments that an :mplo(ee gets after he retires li)e
:P6 3:mplo(ee Pro.ident 6und4 et- Mis-ellaneous -ompensationF /t ma( in-lude
emplo(ee assistan-e programs 3li)e ps(-hologi-al -ounseling+ legal assistan-e et-4+
dis-ounts on -ompan( produ-ts+ use of a -ompan( -ars+ et-
0&
RETENTIONS STRATEGIES ADOPTED BY TECH MAHINDRA
Strategy adapted by company for retention of employees
"4 Right Hiring
#4 'raining emplo(ee properl(
04 Re*arding - 6or -areer Progression and De.elopment
%4 Performan-e Management
54 Regulating :mplo(ee -(-le
Annual rate of employee leaving is 9- 10 yearly.
SKILLS ANALYSED BY COMPANY
TECHNICAL SKILLS BEHAVIOURAL SKILLS
"4 Dommuni-ation s)ills
#4 ;ttitude
04 ;--ommodation
%4 6le7ibilit( to*ards *or)
0<
54 =illingness for #%/< dedi-ation
0A
EMPLOYERS & THEIR KEY DRIVERS TO ATTRACT AND RETAIN
TALENT
o :arl( responsibilities in -areer
o 6le7ible and transparent organi8ational -ulture
o Global opportunities through a .ariet( of e7posure and di.erse e7perien-es
o Performan-e Re-ognition
o Strong global brand
o Kalue-based en.ironment
o Pioneer in man( people pra-ti-es
o Learning and gro*th opportunities
o Dompetiti.e re*ards
o 9pportunit( to gro*+ learn and implement
o Strong so-ial se-urit( and emplo(ee *elfare performan-e- oriented -ulture
o Strong .alues of trust+ -aring fairness+ and respe-t *ithin the organi8ation
o 6reedom to operate at *or)
o :arl( responsibilit( in -areer
o 'raining and learning opportunities
o Kisible+ transparent and a--essible leaders
o Dompetiti.e re*ards
o /nno.ati.e HR programs and pra-ti-es
o 9rgani8ation philosoph( and -ulture
o !ob stabilit(
0B
o Dompan( brand
o 9pen + transparent+ and -aring organi8ation
o Management a--ording to the managing *ith respe-t to guiding prin-iples
o 'raining ad de.elopment programs
o High degree of autonom(
o Kalue -ompatibilit(
ORGANIZATION ENVIRONMENT
/t is not about managing retention /t is about managing people /f an organi8ation
manages people *ell+ emplo(ee retention *ill ta)e -are of itself 9rgani8ations should
fo-us on managing the *or) en.ironment to ma)e better use of the a.ailable human
assets
People want to work for an organization which provides?
;ppre-iation for the *or) done
;mple opportunities to gro*
; friendl( and -ooperati.e en.ironment
; feeling that the organi8ation is se-ond home to the emplo(ee
9rgani8ation en.ironment in-ludes
Dulture
Kalues
Dompan( reputation
Oualit( of people in the organi8ation
:mplo(ee de.elopment and -areer gro*th
%$
Ris) ta)ing
Leading te-hnologies
'rust
%"
IMPORTANCE OF RETAINING EMPLOYEES
THE CHALLENGE OF KEEPING EMPLOYEES
/ts -hanging fa-e has stumped managers and business o*ners ali)e Ho* do (ou manage
this -hallengeC Ho* do (ou build a *or)pla-e that emplo(ees *ant to remain *ith T
and outsiders *ant to be hired intoC
Successful managers and business owners ask themselves these and other questions
because-simply put-employee retention matters:
High turno.er often lea.es -ustomers and emplo(ees in the lur-h@ departing
emplo(ees ta)e a great deal of )no*ledge *ith them 'his la-) of -ontinuit(
ma)es it hard to meet (our organi8ation>s goals and ser.e -ustomers *ell
Repla-ing emplo(ees -osts mone( 'he -ost of repla-ing an emplo(ee is
estimated as up to t*i-e the indi.idual>s annual salar( 3or higher for some
positions+ su-h as middle management4+ and this doesn>t e.en in-lude the -ost of
lost )no*ledge
Re-ruiting emplo(ees -onsumes a great deal of time and effort+ mu-h of it futile
Lou>re not the onl( one out there .(ing for qualified emplo(ees+ and ,ob
sear-hers ma)e de-isions based on more than the sum of salar( and benefits
Bringing emplo(ees up to speed ta)es e.en more time ;nd *hen (ou>re short-
staffed+ (ou often need to put in e7tra time to get the *or) done
The Three Rs. of Employee Retention
'o )eep emplo(ees and )eep satisfa-tion high+ (ou need to implement ea-h of the three
Rs of emplo(ee retentionF respe-t+ re-ognition+ and re*ards
%#
Respect is esteem+ spe-ial regard+ or parti-ular -onsideration gi.en to people ;s the
p(ramid sho*s+ respe-t is the foundation of )eeping (our emplo(ees Re-ognition and
re*ards *ill ha.e little effe-t if (ou don>t respe-t emplo(ees
Recognition is defined as Rspe-ial noti-e or attentionS and Rthe a-t of per-ei.ing
-learl(S Man( problems *ith retention and morale o--ur be-ause management is not
pa(ing attention to people>s needs and rea-tions
Rewards are the e7tra per)s (ou offer be(ond the basi-s of respe-t and re-ognition that
ma)e it *orth people>s *hile to *or) hard+ to -are+ to go be(ond the -all of dut( =hile
re*ards represent the smallest portion of the retention equation+ the( are still an
important one
Lou determine the pre-ise methods (ou -hoose to implement the three Rs+ but in
general+ respe-t should be the largest -omponent of (our efforts =ithout it+ re-ognition
and re*ards seem hollo* and ha.e little effe-tUor the( ha.e negati.e effe-ts 'he
magi- trul( is in the mi7 of the three
%0
REWARDS & RECOGNITION AT TECHM
=hen (ou implement the Rthree RsS approa-h+ (ou *ill redu-e turno.er and en,o( the
follo*ingF
Increased productivity
Reduced absenteeism
A more pleasant work environment (for both employees and you!)
Improved profits
6urthermore+ an emplo(er *ho implements the three Rs *ill -reate a hard- to lea.e
*or)pla-e+ one )no*n as ha.ing more to offer emplo(ees than other emplo(ers Lou
be-ome a hard-to-lea.e *or)pla-eUone *ith a *aiting list of appli-ants for an( position
that be-omes a.ailableUpurposefull(+ one da( at a time
A steadfast philosophy that sets Employee Retention Strategies apart:
V 2ses onl( resear-h-based+ theor(-supported approa-hes to impro.ing emplo(ee
engagement ;.oided are gimmi-)s su-h as emplo(ee of the month+ suggestion
bo7es+ pri8es or other R-arrotsS =hile -ommonl( used+ these short-term fi7es
fail to produ-e genuine emplo(ee lo(alt(
V :mplo(s an eas(-to-understand s(stems approa-h to ensure the root -auses of
turno.er are addressed and the potential for lasting -hange unleashed
V Dustomi8es all a-ti.ities to (our organi8ation>s unique histor(+ -urrent pra-ti-es
and strategi- ob,e-ti.es ;lso -onsidered are -hallenges unique to (our industr(
se-tor+ -ompetiti.e mar)etpla-e issues and talent shortages
%%
V /n.ol.es those responsible for implementing -hange in a-tuall( -reating the
-hange+ ensuring input and impro.ed shared understanding and support of all
initiati.es
V /ntegrates hands-on+ a-tion-oriented approa-hes that enable organi8ations to
mo.e for*ard qui-)l( and effe-ti.el(
V Re-ogni8es the resear-h-pro.en role of no--ost strategies in de.eloping the
RglueS that builds emplo(ee lo(alt( and -ommitment
V Brings to (our organi8ation leading-edge organi8ation-de.elopment best
pra-ti-es to effe-ti.el( and qui-)l( build a retention-ri-h -ulture
%5
KEIS EMPLOYEE RETENTION MANAGEMENT WHEEL
ADOPTED BY BPO COMPANIES AS LIKE AS TECHM
'he first step to impro.ing (our emplo(ee retention is to understand *h( emplo(ees sta(
*ith their -urrent emplo(er Man( ?e7perts? d*ell on the reasons emplo(ees lea.e+
*hi-h is not as important or re.ealing as the reasons the( sta( Dompanies ha.e tried
man( different programs and per)s to hold onto good emplo(ees Ho*e.er+ studies
sho* that these efforts are not enough to retain good emplo(ees *hen the support that is
needed to a-hie.e ,ob su--ess is not adequate
Don't Waste Your Money on Things That Don't Make a Difference...
;mong the -ountless indu-ements offered+ onl( those identified in the -enter of KEi's
Employee Retention Wheel are trul( *hat gi.e emplo(ees a -onsistent reason for
sa(ing ?no than) (ou? *hen tempted *ith a ?s*eeter offer? ;fter (ears of stud( and
e7perien-e+ J:i has determined+ and presented in the Retention =heel+ *hat fa-tors do
ha.e the greatest impa-t on )eeping emplo(ees J:i has used this information to gi.e
emplo(ers the tools to meet the -ore needs that )eep emplo(ees su--essful at their ,obs+
thus redu-ing the high -osts asso-iated *ith un*anted emplo(ee turno.er
%&
%<
USING THE WHEEL TO IMPROVE EMPLOYEE RETENTION
J:i1s :mplo(ee Retention Strateg( is based upon t*o primar( beliefsF
3"4 /t is diffi-ult for emplo(ers to retain good emplo(ees if the( don1t ha.e a
pro-ess to hire the right people in the first pla-e
3#4 Retention pro-esses must dire-tl( support the reasons that su--essful+ satisfied
emplo(ees sta(
J:i1s -on-entration on the -enter of the :mplo(ee Retention =heel pro.ides emplo(ers
*ith /nternet-based tools that gi.e emplo(ees s(stemati-+ ongoing support to be
su--essful in their *or) and satisfied *ith their emplo(ment
The Center of KEi's Employee Retention Wheel: EIGHT FACTORS
Definition of successful: m( ,ob is helping me to gro* personall(+ professionall( and
finan-iall(
Definition of satisfied: m( emplo(er is pro.iding *hat / need to perform m( ,ob
su--essfull(
'hese eight central pro-esses of the :mplo(ee Retention =heel are the fa-tors that are
most -riti-al to an emplo(ee1s ,ob performan-e su--ess
ATTITUDE FOR EMPLOYING
; pro-ess to -learl( define the *a( super.isors are e7pe-ted to intera-t *ith
emplo(ees@ a pro-ess to gi.e emplo(ees a *a( to e7press *hat is most important
to a-hie.e ,ob su--ess@ and a pro-ess to gi.e emplo(ers a *a( to demonstrate
?:mplo(ing Kalues? through emplo(ment poli-ies
'his ?:mplo(er Mission Statement? is about ho* and *ho (ou hire+ ho* (ou treat
them+ and the organi8ation1s .alues as an emplo(er /t is about ma)ing sure that
%A
the Kalues for :mplo(ing
P
are -ommuni-ated to (our emplo(ees and -onsistentl(
implemented throughout (our organi8ation /t is about the total emplo(ment
pa-)age that goes be(ond salar( and traditional benefits
FINDING CANDIDATES
; pro-ess that gi.es emplo(ers a -omprehensi.e *a( to -ommuni-ate to ,ob
see)ers *hat it ta)es to a-hie.e short-term and long-term ,ob su--ess+ and to
attra-t the -andidates *ho fit this -riteria
SORTING APPLICANTS
; pro-ess that gi.es emplo(ers a *a( to -onfirm *hether the attitudes and
beha.iors of ,ob see)ers are a mat-h for their *or) en.ironment
CHOOSING EMPLOYEES
; pro-ess that gi.es emplo(ers a *a( to define the spe-ifi- inter.ie* questions
that pro.e ,ob see)er abilities to su--essfull( perform the target s)ills@ and a
pro-ess that gi.es emplo(ers a *a( to .erif( the a--ura-( of resume/appli-ation
data and inter.ie* responses
STARTING EMPLOYEES
; pro-ess that pro.ides a *a( for ne* emplo(ees 3before performing the ,ob4 to
understand ?*h( the emplo(ers business e7ists@? ?*hat ma)es the business
organi8ation su--essful@? ?*h( the emplo(ee1s ,ob e7ists@? and ?*hat it *ill ta)e
for the emplo(ee to a-hie.e ,ob su--ess?
INFORMING EMPLOYEES
; pro-ess that gi.es emplo(ers a *a( to pro.ide essential information 3from fi.e
-riti-al information sour-es4 that is needed b( emplo(ees to ma)e dail( *or)
%B
de-isions
IMPROVING EMPLOYEES
; pro-ess that gi.es super.isors and emplo(ees a *a( to *or) together to build
personali8ed plans for impro.ing ea-h emplo(ee1s priorit( ,ob s)ills@ and a pro-ess
that gi.es the emplo(er a *a( to ?deli.er s)ills-impro.ing training -urri-ulum?
and to ?measure the learning effe-ti.eness? from the training e7perien-es
REWARDING EMPLOYEES
; pro-ess that gi.es emplo(ers a *a( to define and -ommuni-ate e7a-tl( ho*
indi.idual emplo(ee salaries are determined@ and a pro-ess that gi.es emplo(ers a
*a( to pro.ide emplo(ees *ith e7tra in-enti.e in-ome that is earned through the
a-hie.ement of -ash generating business goals
5$
10 WAYS TO RETAIN YOUR EMPLOYEE
Retaining )e( personnel is -riti-al to long term su--ess of an organi8ation ; Retention
Strateg( has be-ome essential if (our organi8ation is to be produ-ti.e o.er time and -an
be-ome an important part of (our hiring strateg( b( attra-ting the best -andidates *ho
)no* of (our tra-) re-ord for -aring for emplo(ees /n fa-t+ some -ompanies do not ha.e
to re-ruit be-ause the( re-ei.e so man( qualified unsoli-ited submissions due to their
histor( of e7-ellen-e in emplo(ee retention
How do you get your employees to "fall in Love" with your organization? This is a
great question. Some recently conducted research lists these
TOP TEN STRATEGIES:
1. Treat your employees like you treat your most valuable clients. /t is -heaper
to )eep (our good emplo(ees than it is to hire and train ne* ones Lour top #$-
#5H should be -ourted as (ou *ould -ourt and then ser.i-e (our top -ustomers
2. Get your employees to "Fall in Love" with your organization. Dommuni-ate
(our .ision in a -ompelling *a( Sho* e.er(one the role the( ha.e to -ontribute
to this .ision Dreate opportunities for people to -onne-t *ith ea-h other for
support and to impro.e -ommuni-ation in *or) teams
5"
Dapture the Hearts of (our *or)for-e *ithF Dompelling .ision / Balan-e /
Delebration-6un
9pen Dommuni-ationF /nternal listening is a priorit(+ multiple lines of
-ommuni-ation 'his is essential for managing -hange in a positi.e *a(
*ith less sabotage+ anger+ resistan-e+ and fear
3. Strong retention strategies become strong recruiting advantages.
4. Retention is much more effective when you put the right person into the
right job. Know the job! Know the employee and their motivations.
Half of the 6ortune 5$$ -ompanies are no* using assessments to more full(
understand ea-h ,ob and the soft s)ills that are required for top produ-tion *ithin
their spe-ifi- -ompan( -ulture 'hese ben-hmar)ed s)ills are then -ompared
against qualified appli-ants to help determine *ho *ill be su--essful in the
position and fit *ell *ithin their -ompan(1s -ulture 'hese assessments are also
used as a po*erful professional de.elopment tool to enhan-e the training of
-ontinuous life-long learning ;d.an-ed 6ibre Dommuni-ation is beginning to
use this assessment pro-ess in hiring
5. Money is important but it is not the only reason people stay with an
organization.
/f (our -ompensation plan is in the top #$-0$H of (our industr(+ then mone(
*ill often not be the reason *h( people lea.e
6. Employee committees to help develop retention strategies is a very effective
strategy.
5#
Get their inputW ;s)+ *hat do people li)e about *or)ing hereC =hat *ould (ou
li)e -hanged to ma)e (our -ompan( a better pla-e to *or)C Some -ompanies+
su-h as ;d.an-e 6ibre Dommuni-ation 3;6D4+ ha.e re-ogni8ed that the spe-ial
engineers and te-hni-al e7perts that are the -ornerstones of their business+ require
spe-ial attention Ki-toria Perrault+ KP of ;dministrati.e Ser.i-es for ;6D+ sa(s
that her -ompan( has identified the top #5H of their staff and -aters to these
spe-ial people b( meeting their finan-ial requirements and loo)ing for the best
pa-)age of benefits that these people *ill find most positi.e as in-enti.es to sta(
'he( e.en ha.e emplo(ee -ommittees that *or) as ?fo-us groups? to determine
*h( people sta( at ;6D and *hat the( might *ant to see -hanged to ma)e ;6D
an e.en better pla-e to *or)
7. Leadership must be deeply invested in retention.
Management must be s)illful -ommuni-ating -ompan( poli-ies in a *a( that
-reates ?bu(-in? from their staff and be open to emplo(ee input Help -reate
?o*nership? in (our emplo(ees 'he -ompanies *ith the best retention
per-entages are the same -ompanies that are a-ti.el( -ommitted to retention
'he( )no* that is -osts less to )eep good people than to -ontinuousl( ha.e to
repla-e unsatisfied emplo(ees and managers
8. Recognition, in various forms, is a powerful retention strategy.
/t does not ha.e to -ost a lot 2S Dept of Labor - %&H of people lea.e their ,obs
be-ause the( feel unappre-iated
9. Remember, the "Fun Factor" is very important to many employees.
Greg Peters+ Past President and D:9 of Mahi Net*or)s in Petaluma+ is one of
50
man( e7e-uti.es *ho reported that retention is often related to interpersonal
-onne-tions and amount of 62N in *or) teams 'he 62N 6a-tor is part of the
generation of *or)ers that use a-ti.ities as stress management in highl( -harged
produ-tion en.ironments *here long hours are required Greg has en-ouraged
Ping-Pong tournaments and bas)etball leagues for interpersonal intera-tion+ fun+
and stress management 'hough not e.er(one -an parti-ipate in ph(si-al
a-ti.ities+ this sets the tone in a -ulture based on -ompetition+ health/*ell-being+
and intera-tions that are in-lusi.e be(ond *or)
5%
EMPLOYEE MORALE PREVENT COMPANIES
FROM ACHIEVING RETENTION SUCCESS
Despite (ears of resear-h that point to far different solutions+ man( -ompanies use the
*rong ta-ti-s *hen tr(ing to impro.e emplo(ee morale+ satisfa-tion and retention 'hese
m(ths pre.ail+ in part+ be-ause businesses ha.e used these methods+ ho*e.er *rong+ for
a .er( long time and ha.e be-ome used to tr(ing the same ideas
MYTH #1: PEOPLE MOST OFTEN LEAVE A COMPANY FOR MORE PAY.
:7it inter.ie*s+ -ondu-ted to learn *h( people lea.e an organi8ation+ -ontain some of
;meri-a>s greatest fi-tion People frequentl( sa( the(>re lea.ing for more mone(
be-ause it>s the easiest reason to gi.e More often the -auses leading to departure are
related to issues that *ere unsatisf(ing in the ,ob or the -ompan( '(pi-al issues that
-ause dissatisfa-tion are -ompan( poli-ies and pro-edures+ qualit( of super.ision+
*or)ing -onditions+ relationship *ith the immediate super.isor and salar(
Les+ pa( does matter =hile resear-h sho*s most people don>t a-tuall( lea.e a ,ob for
more mone(+ there are t*o important fa-tsF Ker(-lo*-in-ome *or)ers *ill lea.e for
more mone( be-ause it>s a sur.i.al issue 6or the rest of *or)ers+ the issue of mone(
a-tuall( is about fairness People be-ome dissatisfied *ith pa( *hen the( feel it is unfair
*ithin the -ompan(+ *ithin the industr( or *hen pa( doesn>t seem to mat-h the amount
or t(pe of *or) required 'o in-rease emplo(ee satisfa-tion and retention+ -ompanies
ma)e more gains b( *or)ing to impro.e *hether people feel a sense of a-hie.ement+
re-ognition+ -ompeten-e and gro*th+ *hether there are -hoi-es about ho* *or) gets
done and *hether emplo(ees feel respe-ted b( management
55
MYTH #2: INCENTIVE PROGRAMS PRODUCE LONG-TERM PROFITS AND
IMPROVE PRODUCTIVITY AND MORALE.
So+ *ho doesn>t li)e free stuffC Ho*e.er+ in-enti.es su-h as gifts and -ash bonuses for
meeting speed and .olume goals don>t affe-t emplo(ee -ommitment 'he(>re reall( a
thro*ba-) to outdated management beliefs that *or)ers must be -oer-ed in order to
*or) hard ;ll the e7tras don>t add up to the real glue that -reates emplo(ee
-ommitmentF the -han-e to learn and gro*+ meaningful *or)+ good super.isors and
respe-t and appre-iation for a ,ob *ell done /n-enti.es ha.e been o.er-used parti-ularl(
in the past de-ade+ as management boo)s touted the importan-e of impro.ing
re-ognition of e7-ellent *or) Let+ studies sho* that -arrot-and-sti-) moti.ation
a-tuall( does not pa( off in long-term -ompan( profitabilit( or emplo(ee satisfa-tion or
retention 'o the -ontrar(+ in-enti.es -an harm qualit( *hen emplo(ees aim for speed or
other goals rather than qualit(
MYTH # 3: PEOPLE DON`T WANT MORE RESPONSIBILITY.
'he( don>t *ant more *or) if the(>re alread( o.erloaded due to lean staffing@ but
people indeed *ant the opportunit( to gro* and de.elop their s)ills+ ad.an-e their
-areers and ha.e the opportunit( for greater .ariet( Jeep in mind *hat the resear-h
-onfirmsF People do *ant to tr( ne* things+ to feel s)illful and to e7perien-e the
personal satisfa-tion of higher le.els of a-hie.ement
People don>t need a ,ob promotion in order to gain more responsibilit( 'he same ,ob
-an be broadened to in-lude more .ariet(+ more -onta-t *ith different parts of the
organi8ation and greater -ontrol o.er de-isions on a--omplishing *or) tas)s
5&
MYTH #4: LOYALTY IS DEAD.
Not at all+ though it is ailing in man( organi8ations People are see)ing greater *or)-life
balan-e than in the past+ and emplo(ers ha.e made great strides in pro.iding more
fle7ible hours and dress -odes Still+ people see) to ma)e a -ontribution+ and
organi8ations that pro.ide health( doses of the main satisfiers en,o( signifi-antl( lo*er
turno.er and higher morale Profits are higher+ too+ a--ording to re-ent resear-h studies
'hings ha.e -hanged+ indeed 'oda(>s *or)ers *ill+ in fa-t+ -hange -areers and ,obs
mu-h more often =hen the e-onom( is good+ people ha.e be-ome mu-h more at ease in
-hanging -ompanies+ are more li)el( to a-quire ne* s)ills and mo.e to -ompanies that
offer greater -han-e to use more of their )no*ledge and more *illing to ta)e the ris)s of
starting ane* at another organi8ation
=hat has emerged in -urrent management studies are that the same qualities that hold
emplo(ees are the ones that best ser.e the -ustomersF :mplo(ees *ho -an ma)e qui-)
de-isions on behalf of the -ustomer and the -ompan(@ emplo(ees *ho ha.e a broader
s-ope of responsibilit( that allo*s them some freedom and le.erage to sol.e -ustomer
problems@ learning opportunities that gi.e emplo(ees the s)illfulness to address
-ustomer issues@ and supporti.e management and super.isors *ho use an( mista)es that
o--ur as tea-hing opportunities
MYTH #5: IMPROVING EMPLOYEE SATISFACTION IS EXPENSIVE.
Resear-h tells us the true satisfiers -an>t e.en be boughtF -areer gro*th+ meaningful
*or)+ respe-t and appre-iation and being able to influen-e ho* *or) gets done /n these
leaner times emplo(ers ha.e the same opportunit( to gain true lo(alt( despite lo*ered
budgets
5<
'he trin)ets and pri8es gi.en in re-ognition and re*ards programs aren>t ne-essar(
ingredients for de.eloping an engaged *or)for-e 'he RglueS that holds people is made
of mu-h different stuffF Management that listens and responds to emplo(ees> ideas about
impro.ing ser.i-e+ super.isors *ho support people>s gro*th and initiati.e+ training in
ho* to do the ,ob su--essfull(+ good relationships *ith -o*or)ers and genuine
appre-iation for a ,ob done *ell 'here are no -osts in-urred to build or enhan-e these
moti.ators
MYTH #6: EMPLOYEE SATISFACTION IS ~FLUFF.
Does ha.ing engaged *or)ers ma)e a differen-e in the bottom lineC Studies no* sho*
that lo*er turno.er and greater le.els of emplo(ee satisfa-tion ha.e a definite positi.e
impa-t on -ustomer satisfa-tion and profitabilit(+ *hi-h are the )e( fa-tors in -ompan(
gro*th and sustainabilit( Donsider these fa-tsF
V ; strong lin) *as found in a stud( b( Pri-e*aterhouseDoopers bet*een
emplo(ee retention and the qualit( of ser.i-e as rated b( -ompanies> -ustomers
V ;--ording to the ;meri-an So-iet( of 'raining E De.elopment+ organi8ations
that in.ested the most in training had higher gross margins and in-ome per
emplo(ee
V 'he -ost of repla-ing an emplo(ee *ho lea.es has been estimated b( .arious
studies to be bet*een <$ and #$$ per-ent of that *or)er>s annual salar(
V 'he Doun-il on Dompetiti.eness found that a "$-per-ent in-rease in edu-ation
has a more positi.e impa-t on produ-ti.it( than a "$-per-ent in-rease in *or)
hours
5A
/n.esting in people and using the most effe-ti.e management pra-ti-es in-reases profits
MYTH #7: SUPERVISORS ARE THE PROBLEM.
Man( senior leaders e7press disma( about the qualit( and a-tions of their middle
managers and front-line super.isors 'he Rblame gameS is old+ (et the solutions are
stri)ingl( similar to those required to build an engaged *or)for-e
/n most organi8ations toda(+ super.isors ha.e more people reporting to them than in the
past+ more demanding -ustomers than e.er and greater amounts of -hange G all
o--urring at the same time Let+ the amount of training pro.ided to managers and
super.isors in man( organi8ations is minimal More importantl(+ the amount of time that
senior managers spend in dialogue *ith middle and line managers also is minimal
Middle managers and super.isors -an appear resistant to impro.ement efforts Ho*e.er+
the true failure e7ists in our understanding of their *orld+ the -hallenges the( fa-e and
the support the( need in order to be su--essful Su--essful organi8ations see) to build
team*or) bet*een senior leaders and middle managers and line super.isors
MYTH # 8: MY COMPANY/INDUSTRY/PEOPLE ARE DIFFERENT!
Les+ e.er( -ompan( is unique+ and e.er( industr( has its o*n set of unusual -hallenges
Ho*e.er+ a .er( -ostl( mista)e is made *hen *e belie.e information from other se-tors
doesn>t appl( to us or our organi8ation Retention resear-h studies -ross all industries+
all t(pes of *or) settings and in .aried e-onomi- -onditions Still+ the same results -ome
up time and again =e build emplo(ee lo(alt( G and+ indire-tl(+ -ustomer lo(alt( G
through pro.iding people *ith gro*th and learning opportunities+ minimi8ing red tape+
allo*ing people to thin) and ma)e good -hoi-es+ supporting middle managers and front-
5B
line super.isors and appre-iating the efforts that people gi.e to help our -ustomers /t>s
do*nright dangerous to ignore these findings G ris)( to the bottom line and the
organi8ation>s future
BARRIERS TO SUCCESS
La-) of support from management team
/nabilit( to pro.ide hard numbers
Dompan( -ulture does not support -hange
Ba-) lash from single *or)ers
6ailure of other programs due to lo* utili8ation
Managers do not .ie* *or)/life initiati.es as business tools that impa-t
emplo(ee retention
&$
FACTORS AFFECTING EMPLOYEE RETENTION AT TECHM
Most managers understand the importan-e of emplo(ee retention and its impa-t on the
o.erall health and .italit( of an organi8ation 'he importan-e of retaining top
organi8ational talent *ill onl( in-rease o.er the -oming (ears as the massi.e -ohort of
bab( boomers begin to rea-h retirement age ma)ing it eas( for (ounger emplo(ees to
find *or)
/n a pre.ious arti-le *e identified some useful tips to help impro.e emplo(ee retention
in (our organi8ation Gi.en the importan-e of emplo(ee retention+ *e ha.e -ompiled
another list of "$ important fa-tors that -an affe-t emplo(ee retention in (our
organi8ation
Shorten the feedback loop
Do not *ait for an annual performan-e e.aluation to -ome due to gi.e feedba-) on ho*
an emplo(ee is performing Most team members en,o( frequent feedba-) about ho*
the( are performing Shortening the feedba-) loop *ill help to )eep performan-e le.els
high and *ill reinfor-e positi.e beha.ior 6eedba-) does not ne-essaril( need to be
s-heduled or highl( stru-tured@ simpl( stopping b( a team member1s des) and letting
them )no* the( are doing a good ,ob on a -urrent pro,e-t -an do *onders for morale and
help to in-rease retention
Offer a competitive compensation package
;n( team member *ants to feel that he or she is being paid appropriatel( and fairl( for
the *or) he or she does Be sure to resear-h *hat other -ompanies and organi8ations are
offering in terms of salar( and benefits /t is also important to resear-h *hat the regional
and national -ompensation a.erages are for that parti-ular position Lou -an be sure that
&"
if (our -ompensation pa-)age is not -ompetiti.e+ team members *ill find this out and
loo) for emplo(ers *ho are *illing to offer more -ompetiti.e -ompensation pa-)ages
Balance work and personal life
6amil( is in-redibl( important to team members =hen *or) begins to put a signifi-ant
strain on one1s famil( no amount of mone( *ill )eep an emplo(ee around Stress the
importan-e of balan-ing *or) and one1s personal life Small gestures su-h as allo*ing a
team member to ta)e an e7tended lun-h on-e a *ee) to *at-h his son1s baseball game
*ill li)el( be repaid *ith lo(alt( and e7tended emplo(ment *ith an organi8ation
Beware of burnout
Staff adequatel( to redu-e the amount of un*anted o.ertime a team member must *or)
Some emplo(ees en,o( the e7tra mone( that a--ompanies o.ertime hours+ *hile others
*ould rather spend their time *ith their families or doing other a-ti.ities the( en,o(
Burnout -an be a leading -ause of turno.er Re-ogni8e the *arning signs and gi.e
emplo(ees a brea) *hen the( need it
Provide opportunities for growth and development
9ffer opportunities for team members to a-quire ne* s)ills and )no*ledge useful to the
organi8ation /f an emplo(ee appears to be bored or burned out in a -urrent position offer
to train this indi.idual in another fa-et of the organi8ation *here he or she *ould be a
good fit Nobod( *ants to feel stu-) in their position *ill no possibilit( for ad.an-ement
or ne* opportunities
The ability to provide input and be taken seriously
:.er(bod( has opinions and ideas+ some are better than others Ho*e.er e.er( team
member *ants to feel that their input is *el-ome and *ill be ta)en seriousl( *ithout
&#
ridi-ule or -ondes-ension Some of the greatest ideas -an -ome from the most unli)el(
of pla-es and people Dreating a -ulture *here input is *el-ome from all le.el of the
organi8ational -hart *ill help (our organi8ation gro* and en-ourage emplo(ee retention
Management must take the time to get to know team members
/t1s not a big surprise that one of the greatest -omplaints that emplo(ees e7press in e7it
inter.ie*s is a feeling that management didn1t )no* the( e7isted Nobod( *ants to feel
li)e ,ust another spo)e in a big *heel Managers are .er( bus( - e.er(bod( is bus(+ but it
is -ru-ial that managers and super.isors ta)e the time get to )no* the team members
*ho *or) under them Learn and remember a team member1s name+ *hat s)ills and
talents the( bring to the table+ and *hat their business interests are 'he time spent b(
management getting to )no* team members is *ell in.ested and -an eliminate the
heada-hes -aused b( ha.ing to -ontinuall( hire and re-train ne* emplo(ees
Provide the tools and training an employee needs to succeed
Nothing -an be more frustrating to an emplo(ee than a la-) of training or the proper
tools to su--essfull( -omplete his or her duties Lou *ouldn1t tr( to build a house
*ithout a hammer+ so *h( should an offi-e ,ob be an( differentC Pro.iding a team
member *ith the tools and training she needs to be su--essful sho*s a -ommitment and
in.estment in that emplo(ee and *ill en-ourage the team member to sta( *ith the
organi8ation
Make use of a team member's talents, skills, and abilities
;ll team members ha.e )no*ledge+ s)ills+ and abilities that aren1t dire-tl( related to their
,ob des-ription+ but are still useful to an organi8ation 2tili8ing a team member1s talents
in areas other than their -urrent position *ill indi-ate to an emplo(ee that management
&0
appre-iates and re-ogni8es all that an emplo(ee has to offer to the organi8ation 'his -an
also pro.ide *or) .ariet( and helps to brea) up the e.er(da( grind of *or)
Never threaten a team member's job or income
=hile threatening an emplo(ee *ith termination or demotion might seem li)e a surefire
*a( to get the results needed from him or her+ doing so *ill li)el( -ause the emplo(ee to
lea.e the organi8ation Put (ourself in the emplo(ee1s shoes+ *hat is the first thing (ou
*ould do if (our ,ob *as threatenedC 9dds are (ou *ould probabl( update (our resume
and start -he-)ing for open ,ob postings e7pe-ting the *orst /f a team member1s
performan-e is not *hat (ou had hoped it *ould be+ *or) *ith that team member on
*a(s to impro.e his performan-e+ sa.ing termination onl( as a last resort
REASON FOR EMPLOYEE TO COME TO TECHM
Pa(+ Lo-ation+ Benefits+ ;d.an-ement Possibilities+ !ob Se-urit(+ Nature 9f
=or)+ Personal/6amil( 'ime
REASONS FOR EMPLOYEE TO STAY WITH TECHM
Donfiden-e 6a-tor-the( belie.e in potential su--ess/leadership strategies
:motional 6a-tor- 3Huge4 -ontribution+ re-ognition+ appre-iation
'rust 6a-tor- # *a(s- promises/-ommitments )ept 3strong lin) to lo(alt(4
6it 6a-tor- Kalues/ethi-s are a good fit
Listening 6a-tor- ;re the( heard and .aluedC
&%
SOLUTION FOR THE PROBLEMS
FINDING THE CAUSE OF ATTRITION
Ha.e a sur.e( among emplo(ees to find the reasons for attrition /f possible+ ha.e e7it
inter.ie*s to )no* the reasons for resignations /f a )e( emplo(ee resigns+ it should be
ta)en up on a priorit( basis and the senior management should meet the emplo(ee to
dis-uss his reasons for lea.ing and e.aluate *hether his issues bear merit and *hether
the( -an be resol.ed Steps -an be ta)en to a.oid similar reasons from o--urring in the
-ase of others+ in similar positions

What can be done?
'hough+ it is impossible to s-rap problems totall(+ there are -ertain *a(s b( *hi-h BP9
managements -an ta-)le attrition Sin-e the e.er( organisation is unique+ these
-ompanies need to de.elop inno.ati.e *a(s to ta-)le their problems Human Resour-es
department of -ompanies must address these issues+ and along *ith the management
need to e.ol.e strategies to retain emplo(ees at all le.els

At the time of Recruitment
Sele-t the right people through -ompeten-( s-reening
2se ps(-hometri- tests to get people *ho -an *or) at night and handle the
monoton(
9ffer an attra-ti.e+ -ompetiti.e+ benefits pa-)age
Ma)e -lear of performan-e enhan-ed in-enti.es and other benefits Jeep these
promises+ later
&5
AT THE OFFICE
;n emplo(ee>s *or) must be -ommuni-ated to him -learl( and thoroughl( 'he
details of the ,ob+ its importan-e+ the *a( it should be done+ ma7imum time that
-an be allotted to -omplete it et-+ must be made -lear /f there are -hanges to
an( of these+ let the emplo(ee )no* at the earliest
Gi.e the emplo(ees ne-essar( tools+ time and training 'he emplo(ee must ha.e
the tools+ time and training ne-essar( to do their ,ob *ell - or the( *ill mo.e to
an emplo(er *ho pro.ides them
Ha.e a person to tal) to ea-h emplo(ee at regular inter.als Listen and sol.e
emplo(ee -omplaints and problems+ as mu-h as possible 6airness and impartial
treatment b( seniors is important Help emplo(ees manage stress+ both at *or)
and if possible+ off *or) too Gi.e them spe-ial -on-essions+ *hen in need 'reat
the emplo(ees *ell E pro.ide dignit( of ,ob
'he qualit( of the super.ision an emplo(ee re-ei.es is -riti-al to emplo(ee
retention 6requent emplo(ee -omplaints arise on this issue
Pro.ide the emplo(ees a stress free *or) en.ironment People *ant to en,o( their
*or) Ma)e *or) and *or) pla-e -heerful and fun-filled as possible
&&
NIGHT SHIFTS

" Ha.e do-tors to ad.ise them about health problems and the *a(s and means to
deal *ith them Pro.ide dietar( ad.i-eF - Dos and donts Help them to maintain
their health
# 9rgani8e programmes *here people from other professions+ *ho ha.e night
shifts tal) to BP9 emplo(ees about their e7perien-es 9ther organisations li)e
;rm(+ Rail*a(s+ Hospitals and .arious go.ernment ser.i-es et-+ also ha.e night
shifts
0 9rgani8e training+ -ounselling and de.elopment programmes for emplo(ees 'ell
them that their *or) is important :n-ourage the best performers to share their
e7perien-es *ith others and guide others 'he emphasis is to -reate the desire to
learn+ en,o( and be passionate about the *or) the( do
% /f needed+ pro.ide spe-ial lights in the offi-e/*or)pla-e to ensure that their
bodies get suffi-ient .itamin D
9ne distin-t disad.antage of night shifts is the sense of disorientation *ith friends
and famil( members Don-entrate on this problem and de.elop inno.ati.e solutions
and *a(s to deal *ith it ;dditional holida(s for *or) on national holida(s and
festi.als+ holida(s for famil( fun-tions et-+ -an go a Long *a(
&<
EMPLOYEE RECOGNITION INCREASES RETENTION

/t seems that no* more than e.er emplo(ee re-ognition is limited at best in man(
organi8ations 2nfortunatel( man( managers don1t understand the importan-e of
re-ogni8ing a team member1s hard *or) and a ,ob *ell done Man( might e.en as) *h(
the( should re-ogni8e their emplo(ees *hen the( are ?,ust doing their ,ob? 'he truth is
that re-ogni8ing emplo(ees for their hard *or) is one of the least e7pensi.e and easiest
*a(s to impro.e the le.el of emplo(ee retention in (our organi8ation 'he return on
in.estment for a manager1s time and limited e7penses -an be in-redible Re-ogni8ing an
emplo(ee1s performan-e reinfor-es positi.e beha.ior and en-ourages additional positi.e
beha.ior /f a team member feels that he or she is appre-iated the( *ill be mu-h more
li)el( to repeat their beha.iors in the future and e.en put out more effort than before
=hen a business leader understands the po*er of re-ogni8ing his or her emplo(ees the
-ulture of an organi8ation rea-ts to this re-ognition and mo.es in a positi.e dire-tion
helping to retain more emplo(ees :mplo(ee re-ognition -an be as simple or as
e7tra.agant as one desire 'he follo*ing is a short list of simple *a(s to re-ogni8e team
members for a ,ob *ell done and impro.e retention in (our organi8ation
V ; simple ?than) (ou? or ?ni-e ,ob? gi.en in regular frequen-( -an signifi-antl(
boost team morale 9ften times a team member *ill greatl( appre-iate the time
(ou spent to find him at his des) and deli.er the message in person
V Send a than) (ou -ard or e--ard ;lso photo-op( the than) (ou and do-ument the
reason for the re-ognition in the emplo(ee1s file Let the emplo(ee )no* (ou did
this - it *ill let her )no* that her hard *or) *ill not be forgotten
&A
V Mo.ie ti-)ets+ gift -ertifi-ates+ or an engra.ed gift are e7-ellent re*ards for an
emplo(ee *ho has e7-elled or put in the e7tra effort to ma)e a pro,e-t happen
V Re-ogni8e the team member1s -ontribution in front of members of management
'his -an redu-e the tenden-( for emplo(ees to feel that their super.isors ta)e all
the -redit for their hard *or)
V Re-ogni8e lo(alt( and e7-eeding e7pe-tations Mention the team member1s hire
anni.ersar(+ large -ontra-t *on+ or surpassing of a sales goal in the -ompan(
ne*sletter or at a staff meeting
V Jno* ho* to re-ogni8e (our staff Not all staff members *ant to be singled out
at a gathering of hundreds of fello* team members+ *hile for others it *ould
ma)e their *ee) 'he approa-h to re-ogni8ing team members -an .ar( greatl( b(
generational -ohort Lou might seriousl( embarrass a bab( boomer b( ha.ing
them stand up in front a
&B
RETENTION MANAGEMENT STRATEGIES HELP TO
DRIVE REVENUE GROWTH
:mplo(ee satisfa-tion is essential to an( effe-ti.e emplo(ee retention strateg( - an(
good HR manager )no*s that Ho*e.er fe* managers thin) of the impa-t that emplo(ee
satisfa-tion has on their -ustomers and ultimatel( -ompan( profits 9ne -an assume that
happier+ more produ-ti.e emplo(ees *ill ma)e more sales+ treat -ustomers better+ and
ultimatel( ma)e more mone( for the -ompan(+ but fe* -ompanies ha.e anal(8ed this
assumption to the e7tent that Sears+ Roebu-) and Dompan( has Sears has put this
-ommon assumption to the numbers test and the results are intriguing to sa( the .er(
least
"BB# *as the *orst (ear on re-ord for Sears+ losing almost % billion dollars on o.er 5#
billion dollars in retail sales 'he earl( and mid "BB$s *ere trul( tr(ing times for the
retail giant and tested the *ill and resol.e of managers and emplo(ees ali)e During this
time the -ompan( *as in near shambles+ morale *as lo*+ re.enues *ere suffering+ and
the bottom line *as hemorrhaging red in) 'his *as in star) -ontrast to nearl( a -entur(
of stellar results that Sears had -omfortabl( en,o(ed 6or Sears+ something needed to be
done+ and fastW
Sears began their turnaround b( identif(ing three )e( ob,e-ti.esF Dreating a -ompelling
pla-e to *or)+ a -ompelling pla-e to shop+ and lastl( -reating a -ompelling pla-e to
in.est 9ne of the tools used to establish these ob,e-ti.es *as the emplo(ee--ustomer-
profit -hain 'he emplo(ee--ustomer-profit -hain is essentiall( a flo* -hart that
diagrams re.enue -reation starting *ith emplo(ee attitudes and satisfa-tion+ follo*ed b(
<$
its effe-t on -ustomer satisfa-tion+ and ultimatel( the effe-t on re.enue and bottom line
profit generation
9ne thing Sears reali8ed it needed to do *as e7ert a greater effort fo-using on the
-ustomer 'his is often times easier said than done for man( organi8ations Ho*e.er
Sears too) an inno.ati.e approa-h to in-reasing -ustomer fo-us Based on the emplo(ee-
-ustomer-profit -hain+ it reali8ed that it -ould not better fo-us on the -ustomer *ithout
first fo-using on its emplo(ees
6or Sears <$H of its *or)for-e *as part-time status and turno.er among its part-time
*or)for-e had be-ome alarmingl( high Sears suspe-ted that lo* morale and poor
emplo(ee attitudes to*ards the -ompan( *ere to blame Sears began a rigorous pro-ess
of measuring emplo(ee attitudes and satisfa-tion .ia a <$ question emplo(ee sur.e( 'he
results of this sur.e( *ere then ,u7taposed to -ustomer satisfa-tion sur.e(s and
ultimatel( -ompared to re.enue and profit trends for the -ompan( 'he -orrelations
dra*n from the data *ere greater than Sears -ould ha.e e.er imagined
2ndoubtedl( Sears e7pe-ted to see some positi.e -orrelation bet*een emplo(ee and
-ustomer satisfa-tion and ultimatel( re.enue and profit generation@ ho*e.er the( *ere
ama8ed to see ,ust ho* great an impa-t emplo(ee satisfa-tion le.els had on the bottom
line 'he data re.ealed that for ea-h fi.e point impro.ement on the emplo(ee attitude
s-ale+ there *as a subsequent "0H impro.ement in -ustomer satisfa-tion+ and a $5H
in-rease in re.enue gro*th
; $5H in-rease in re.enue might sound minis-ule+ ho*e.er *hen it is based on
re.enues of o.er 5$ billion dollars it adds up qui-)l( and signifi-antl( 6or Sears this
*ould equate to a #5$ million dollar in-rease in re.enues a (earW 'his re.enue in-rease
<"
does not require in.estments into ad.ertising+ ne* fa-ilities+ or impro.ed operations+
onl( an in.estment into the satisfa-tion and happiness of emplo(ees
'here are also -ost sa.ings that -an be attributed to impro.ed le.els of emplo(ee
satisfa-tion /t should -ome as no surprise that happ( emplo(ees sta( in their ,obs longer
than unhapp( emplo(ees B( fo-using on in-reasing emplo(ee satisfa-tion Sears *as
able to -on-urrentl( in-rease re.enues and redu-e the -osts asso-iated *ith emplo(ee
turno.er Sears *as also able to determine that emplo(ees *ith greater le.els of
satisfa-tion and a fa.orable attitude to*ards the -ompan( *ere more li)el( to spea)
positi.el( about the -ompan( and re-ommend shopping there to friends and famil(
members
B( in-reasing emplo(ee satisfa-tion Sears *as able to generate free *ord of mouth
ad.ertising spread b( its emplo(ees+ thus in a *a( redu-ing the relian-e on paid
ad.ertising to generate re.enue Sears reali8ed the importan-e of its emplo(ees and their
le.els of satisfa-tion and made it a -orporate goal to in-rease le.els of emplo(ee
satisfa-tion throughout the -ompan(
<#
STUDY SUGGESTS EMPLOYEES LEAVE BOSSES, NOT 1OBS

Dareful sele-tion of emplo(ees and managers -an ha.e a huge impa-t on (our emplo(ee
retention efforts and emplo(ee turno.er -osts at (our organi8ation /t has been said more
than on-e+ and for good reason+ that emplo(ees lea.e their bosses - not their ,obs ;
6lorida State 2ni.ersit( stud( s-heduled for full release in the 6all #$$< issue of
Leadership Ouarterl( -onfirms this 'he stud( sho*s that %$H of emplo(ees *or) for
bad bosses based on sur.e( results 'he reasons that emplo(ers s-ore poorl( are .aried
and man(F
V 0BH of *or)ers said their super.isor failed to )eep promises
V 0<H indi-ated their super.isor failed to gi.e -redit *hen due
V 0"H said their super.isor ga.e them the ?silent treatment? during the past (ear
V #<H report their super.isor made negati.e -omments about them to other
emplo(ees or managers
V #%H indi-ated their boss in.aded their pri.a-(
V #0H said their super.isor blamed other to -o.er up personal mista)es or
minimi8e embarrassment
So *hat does this all boil do*n toC 'he effe-ts of ha.ing bad bosses in (our
organi8ation -an be de.astating High turno.er+ poor emplo(ee morale+ emplo(ee theft+
diminished -ustomer ser.i-e+ substandard emplo(ee performan-e+ lo*er produ-tion+ and
an organi8ational -ulture of fear and mistrust -an all be blamed in part on poor bosses
and managers 'he -osts of ha.ing poor managers and bosses -an be in-redible
Donsider the -ost of emplo(ee turno.er+ *hi-h is different for all industries and
positions+ but has been roughl( estimated at I"5+$$$ - I"<+$$$ per emplo(ee in lo* to
moderatel( s)illed positions
<0
EMPLOYEE RETENTION STRATEGIES FOR REDUCING
EMPLOYEE TURNOVER COSTS
;t 'he Rainma)er Group *e are -ommitted to helping (our organi8ation Ma7imi8e
Possibilit( b( identif(ing and retaining top performers to a-hie.e a high retention and
high performan-e *or)for-e =e understand that time is mone( to (our organi8ation
:.er( minute of e.er( da( that (our emplo(ee retention problems persist (our
organi8ation is losing .aluable time+ energ(+ and resour-es =ith the use of the po*erful
tools at our disposal+ our emplo(ee retention e7perts *ill get to )no* (our team and
organi8ational -ulture better than (ou e.er -ould ha.e imagined B( doing so *e -an get
do*n to the real -auses of emplo(ee turno.er in (our organi8ation and de.elop an
emplo(ee retention program that is right for (our team 9ur emplo(ee retention
programs deli.er results - *e guarantee itW 9ur -lients al*a(s see a si8able return on
in.estment in the form of impro.ed profitabilit(+ redu-ed emplo(ee turno.er+ and
enhan-ed emplo(ee morale Stop un*anted emplo(ee turno.er dead in its tra-)s and get
ba-) to doing *hat (ou do bestF gro*ing and leading (our organi8ation
<%
REAL HR PRACTICES - TECH MAHINDRA
'o retain emplo(ees it is .er( important to gi.e them a feeling of belongingness in the
-ompan( 6or this the( -ondu-t man( a-ti.ities li)eF
" 'here>s a *ee)l( meeting of e.er( dept *here the emplo(ees are as)ed *hat
their e7pe-tations are from the -ompan( to ma)e the atmosphere and -limate
,o(ful
# ;fter e.er( "5 da(s one da( FUN TRIP is -ondu-ted 3*ithin 5$-<$ Jms4 from
the -ompan( Pla-es li)e :ssel *orld+ Lona.la+ ;libagh Bea-h+ Matheran Hill
Station et- *here the emplo(ee -an ha.e fun and rela7 from their regular *or)
'he destination of the fun trip is de-ided b( the emplo(ee themsel.es 'he
e7pense is held b( the -ompan(
0 :.er( :mplo(ee is gi.en a Laptop+ Mobile 3Rs 5$$ -ard free e.er( month4 or
Landline Phone free
% MY DAY :.er( *ee) the emplo(ee -an ha.e # Rm( da(sS+ ie for t*o da(s a
*ee) the( -an ha.e their o*n time a*a( from offi-e after "0$ pm
5 A!!ual Da" G 'he annual da( is on #%
th
de- :.er( emplo(ee gets a gift .ou-her+
Lun-h at some good hotel and a fun tour to :ssel *orld or *ater Jingdom et-
<5
& ;nnuall( the( also ha.e interdepartmental mat-hes li)e Dri-)et Mat-hes+
Kolle(ball Mat-hes et- to impro.e team building and feeling of belongingness
< #ultureF 9n e.er( /ndian festi.al there>s a big -elebration
a :7F 9n San) rant the( ha.e a $HARTIYA %&'AN( 'he( fl( -olourful
)ites and ha.e -ompetition bet*een the emplo(ees
b :7F 9n Di*ali the( en,o( s*eets and -ra-)ers *ith traditional dresses
A Departme!tal )u!ch: :.er(da( one dept ha.e lun-h together :a-h and e.er(
member of the that Dept eat and drin) together 'his helps in impro.ing the team
spirit and the feeling of belongingness in the dept
B :mplo(ee of the *ee)- A*ARDF
a :.er( *ee) one *or)er is honoured based on the performan-e of the
*or)er 'his impro.es their moral and en-ourages them to *or) hard for
the -oming *ee)
b :.er( month one emplo(ee is honoured as :mplo(ee of the Month
- ;nnuall( one emplo(ee is honoured as :mplo(ee of the (ear
'heir names are de-lared on the Noti-e board and -ompan( maga8ine *hi-h
en-ourages others also to *or) better
"$ Ne* emplo(ees ,oining the -ompan( are gi.en a training of A-"$ da(s
'he training -onsists of indu-tion and orientation program along *ith a # da( trip
'his is a good i-e brea)ing session and helps them to )no* their -olleague 'he lasts
t*o da(s training is -ondu-ted in the a-tual ,ob site
<&
"" Hi+her educatio!F /f an( emplo(ee *ishes for higher edu-ation the -ompan(
sends the emplo(ee to South Jorea for training and en-ourages them to stud(
hard
"# #ar is pro.ided to the entire manager and abo.e 'he petrol e7pense are ta)en
-are b( the -ompan(
"0 ;nnuall( e.er( emplo(ee gets a 5 da(s paid lea.e
"% 'he -ompan( pro.ides the fa-ilit( of all indoor games along *ith a S*imming
pool for the refreshment of the emplo(ee
:7 'able 'ennis+ Dhess+ Badminton+ Snoo)er+ et-
<<
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 Pro-ess 9utsour-ing 3BP94 is the delegation of one or more /'-intensi.e
business pro-esses to an e7ternal pro.ider that in turn o*ns+ administers and manages
the sele-ted pro-ess based on defined and measurable performan-e -riteria Business
Pro-ess 9utsour-ing 3BP94 is one of the fastest gro*ing segments of the /nformation
'e-hnolog( :nabled Ser.i-es 3/':S4 industr(
6e* of the moti.ation fa-tors as to *h( BP9 is gaining ground areF
6a-tor Dost ;d.antage
:-onom( of S-ale
Business Ris) Mitigation
Superior Dompeten-(
2tili8ation /mpro.ement
Generall( outsour-ing -an be defined as - A! or+a!i,atio! e!teri!+ i!to a co!tract -ith
a!other or+a!i,atio! to operate a!d ma!a+e o!e or more o. its /usi!ess processes(
=hen there are so man( benefits asso-iated *ith BP9 industr(T *hen there are so
man( pri.ileges for the BP9 emplo(ees than *hat ma)es them to -hange the
-ompan(/industr(CC /s it onl( M9N:L that matters or an(thing else as *ellCC ;fter
<A
ta)ing e7it-inter.ie*s and anal(8ing the trend / am able to list out follo*ing reasons for
a BP9 professional to -hange his/her ,ob
No gro*th opportunit(/la-) of promotion
6or higher Salar(
6or Higher edu-ation
Misguidan-e b( the -ompan(
Poli-ies and pro-edures are not -ondu-i.e
No personal life
Ph(si-al strains
2neas( relationship *ith peers or managers
/n an industr( li)e BP9+ the *or) -an often be monotonous and opportunities for -areer
gro*th minimal So *hen opportunities be-)on+ the high rate of attrition is not
surprising Ho*e.er+ there are some -ommon reasons that espe-iall( -ause people to
lea.e Sur.e(s ha.e listed night shifts+ mone(+ inabilit( to handle .arious t(pes of stress+
monotonous *or)@ -ompan( poli-ies+ la-) of -areer gro*th+ problems *ith those in
senior positions et-+ as some of the most -ommon reasons listed b( BP9 emplo(ees+ as
reasons for quitting ,obs
<B
OB1ECTIVES OF THE STUDY
'o anal(8e the retention management s(stem adopted b( 'e-h Mahindra
'o anal(8e about retention strategies at 'e-h Mahindra
'o anal(8e about organi8ation and -ulture programme used in BP9//'
-ompanies
'o stud( about emplo(ee retention strategies and all the s(stemati- effort used to
-reate and foster an en.ironment that en-ourages -urrent emplo(ees
'o )no* the reason of 'e-h Mahindra emplo(ees attrition and trends -ausing the
,ob -hurning+ problems fa-ing in retaining qualified people or a-hie.ing
*or)for-e stabilit( in a present implemented :mplo(ee Retention pro-esses
'o )no* the e7tent of effe-ti.eness of emplo(ee retention strategies adopted b(
'e-h Mahindra
:7ploring and de.eloping the emplo(ee retention strategies to mitigate the effe-t
of fa-tors -ausing high emplo(ee turno.er
A$
RESEARCH METHODOLOGY
RESEARCH DESIGN
; resear-h design is purel( and simpl( the frame*or) or plan for a stud( that
guides the -olle-tion and anal(sis of data
'he resear-h *as ta)en in .ie* of latest information and te-hnolog( using in a
sto-) mar)et or se-urities -ompanies
DATA SOURCES
Primary Data are those *hi-h are -olle-ted for the first time for a -ertain
in.estigation 'hese are original and essential ra* data No doubt the information
has been -olle-ted as per -ompan(1s holisti- de.elopment of in.estors used in
se-urities mar)et -ontrolling their ris) /n the stud(+ the primar( data and
se-ondar( data -olle-tion methods are used
DATA SOURCES
Secondary data *as obtained from ,ournals+ maga8ines+ ne*spapers+ boo)s and
of -ourse the /nternet
RESEARCH INSTRUMENT
6or doing the sur.e( resear-h+ structured questionnaire *ith both open-ended
and -losed-ended questions *as used
A"
PLACE OF STUDY
'e-h Mahindra+ Se-tor-5A+ Noida 32ttar Pradesh4
LIMITATIONS OF THE STUDY
Sample si8e is too small to refle-t the opinion of the *hole organi8ation
;n( organi8ation should not re.eal all the details of the 'e-h Mahindra *ith a
fo-us on in.estors> beha.iour in sto-) mar)et
'here is a time bound limit+ as no one -an stud( e7hausti.el( in a .er( less time
period of a number of da(s
La-) of -oordination and -ommuni-ation *as e7perien-ed *hile -olle-ting the
data for the present .olatile mar)et
Respondents seemed to be o.er burdened *ith *or) so the( didn>t gi.e proper
attention
People are hesitating in ans*ering the question
:mplo(ees *ere not interested in filling open- ended questions
A#
GRAPHICAL DATA INTERPRETATIONS
1 Reasons wise analysis at TECHM:
Reasons Numbers Per-entage
Personal Reasons3Relo-ation health Marriage4 "% #0H
Higher :du-ation % <H
9ther Reasons 5 AH
/nadequate -areer gro*th/de.elopment opportunities & "$H
Dissatisfa-tion *ith Pa(roll E Benefits "& #<H
Problem *ith reporting manager 0 5H
Dissatisfied *ith /ndu-tion/ 'raining 0 5H
Dissatisfa-tion *ith *or)ing -ondition 0 5H
La-) of re*ard E Re-ognition opportunities & "$H
'otal &$
0%
5%
10%
15%
20%
25%
30%
Reasons wise analysis:
Personal
Education
Other
Inade c.growth
Dissatisaction
Dissatisied with Induction
Dissatisaction with wor!ing
condition
"ac! o rewa # Recog
GRAPHICAL DATA INTERPRETATION
;s per abo.e graph+ there are #<H are dissatisfied *ith pa(roll and benefits pro.ided b(
':DHM and #0H are dissatisfied due to personal reasons+ *hile most of dissatisfied due
to *or)ing -ondition+ indu-tion and training+ re-ognition opportunities *hile rest are of
gro*th of -areer+ reporting to manager and other reasons are mentioned
2 Analysis on areas of improvement at TECHM:
A0
0%
5%
10%
15%
20%
25%
$nalysis on areas o i%&ro'e%ent
I%& in ser'ices li!e
trans&ort # caeteria
$ny other areas
I%& in co%% channels with
("
I%& in )R&olicies
I%& in org &olicies
I%& in resources inra
GRAPHICAL DATA INTERPRETATION
A%
/mpro.ement ;reas Numbers Percentage
/mpro.ement in ser.i-es li)e transport E -afeteria 10 17
;n( other areas 5 7
/mpro.ement in -ommuni-ation -hannels *ith 'L1s /Managers 10 17
/mpro.ement in HR poli-ies/guidelines/pra-ti-es 15 25
/mpro.ements in organi8ational poli-ies and pra-ti-es 10 17
/mpro.ements in resour-es /materials infrastru-ture 10 17
Total 60
;s per abo.e graph+ there are #5H )no*n their HR poli-ies+ guidelines+ pra-ti-es and
"<H assume that there are impro.ement in organi8ational poli-ies and pra-ti-es+ "<H
are of assume that impro.ements in resour-es and material infrastru-ture
A5
3 Is the training adequate at TECHM?
Is the training adequate at TECHM?
Feedback No. Percentage
Les 38 63.33
No 22 36.67
Total 60
0
10
20
30
*0
50
+0
,0
-es
.o
GRAPHICAL DATA INTERPRETATION
;s per abo.e graph+ there are &%H appro7 assume that the training adequate at ':DHM
*hile rest are assume as N9
A&
% /s the indu-tion adequate at ':DHMC
Feedback No. Percentage
Les 36 60
No 24 40
Total 60
Is the induction ade/uate at (ech0
-es
.o
GRAPHICAL DATA INTERPRETATION
;s per abo.e graph+ there are &$H assumes that there should be indu-tion adequate at
':DHM and rest are said N9
A<
5 Analysis on most and least liked practices at TECHM:
Best liked Practice
Pra-ti-e No. Percentage
Medi-al 11 18
:du-ation Poli-( 6 10
Bi- ;nnual ;ppraisal 17 28
;ll Poli-ies are good 12 20
Lea.e Poli-( 10 17
Marriage 4 7
'otal 60
$nanlysis on 0ost li!ed &ractices
0%
5%
10%
15%
20%
25%
30%
1ritaria
0edical
Education Policy
2i3 $nnual $&&raisal
$ll Policies are good
"ea'e Policy
0arriage
GRAPHICAL DATA INTERPRETATION
;s per abo.e graph+ there are #AH assume that the best bi-annual appraisal at ':DHM
*hile #$H assume that all poli-ies are good *hile "<H assume that the lea.e poli-( are
good and rest are abo.e mentioned and li)ed b( the emplo(ees of ':DHM
AA
6 Referring or suggesting their friends / colleagues / relations to join TECHM or
NO?
Les 44 73
No 16 27
Total 60
Reerring or suggesting their 4riends to 5oin the 1o%&any
-es
.o
GRAPHICAL DATA INTERPRETATION
;s per abo.e graph+ there are <0H assume that the( are suggesting their friends
/-olleagues / relations to ,oin ':DHM *hile rest are said NNo>
AB
< Anything which could prevent from departure to their employees at TECHM?
Change No. Percentage
Nothing 13 22
Good Pa( Pa-)age 25 42
Long Lea.e 12 20
Promotion 10 16
Total 60
.othing
Pay Pac!age
"ong "ea'e
Pro%otion
GRAPHICAL DATA INTERPRETATION
;s per abo.e graph+ there are %#H said that good pa( pa-)age pre.ent from departure to
their emplo(ees *hile #$H said long lea.e and rest promotion poli-ies ie "&H of
':DHM pre.ents to lea.e their emplo(ees
B$
A MA1OR FACTOR OF 1OINING NEW ORGANIZATION
Factor No. Percentage
Not !oining an( Dompan( 22 30
Salar( 18 37
Promotion E Salar( 6 10
Dhange of 'L 9 15
Designation 5 8
Total 60
0%
5%
10%
15%
20%
25%
30%
35%
*0%
0$6OR 4$1(OR O4 6OI.I.7 .E8
OR7$.I9$(IO.
.ot 6oining any
1o%&any
:alary
Pro%otion # :alary
1ange o ("
Designation
GRAPHICAL DATA INTERPRETATION
;s per abo.e graph+ there are 0<H said that salar( is the best *a( to ,oin a ne*
organi8ation *hile 0$H said that not ,oining an( -ompan(+ "$H said that salar( and
promotion is basi- aims of their -areer gro*th path *hile "5H aims are of -hange of 'L
and rest are desire of their designation as *ell
1 Reasonwise analysis :
B"
Total Respondents for the month 60
Reasons Numbers Percentage
Personal Reasons(Relocation health
Marriage) 6 10
Higher Education 5 8
Other Reasons 5 8
Inadequate career growth/development
opportunities 6 10
Dissatisfaction with Payroll & Benefits. 10 17
Problem with reporting manager 13 22
Dissatisfied with Induction/ Training 4 7
Dissatisfaction with working condition 4 7
Lack of reward & Recognition
opportunities 7 12
Total 60
Reason Wise March-April0!
0%
5%
10%
15%
20%
25%
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"
According to the survey done in IICM, the most prompting reason for the
employees appears to be ~problem with the reporting manager as it got 22
votes followed by ~Dissatisfaction with Payroll & Benefits with 17 .
Analysis on areas of improvement for organization
B#
Improvement Areas Numbers Percentage
Improvement in services like transport &
cafeteria 13 22
Any other areas 10 17
Improvement in communication channels
with Managers 12 20
Improvement in HR
policies/guidelines/practices 10 17
Improvements in organizational policies
and practices 7 12
Improvements in resources /materials
infrastructure 8 12
Total 60
Areas of Improvement: IICMin spite of being considered as one of the place to
work, majority of employees think ~Improvement in communication channels with
Managers need to be improved with 20 votes
B0
Areas o# I$pro%e$en& March-April 0!
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20%
25%
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Areas
"
Is the training adequate at TechM?
Feedback No. Percentage
Yes 34 56.67
No 26 43.33
Total 60
Was &he &rainin' A(e)*)&e+
50)01%
23)33%
0)00%
10)00%
20)00%
30)00%
20)00%
50)00%
00)00%
4es 5o
,ee(-ac.
"
Training: Around 57 employees are satisfied with the training programmes
B%
Is the Induction adequate at TechM?
Feedback No. Percentage
Yes 33 55
No 27 45
Total 60
Was In(*c&ion A(e)*a&e +
55%
25%
0%
10%
20%
30%
20%
50%
00%
4es 5o
,ee(-ac.
"
Induction: Around 55 employees think that induction program was adequate
B5
Analysis on Most and Least liked practices at
TechM
Best liked Practice
Practice No. Percentage
Medical 12 20
Education Policy 12 20
Bi- Annual Appraisal 26 43
All Policies are good 3 5
Leave Policy 5 8
Marriage 2 4
Total 60
Mos& Li.e( Polic/
20% 20%
23%
5% 6% 2%
0%
5%
10%
15%
20%
25%
30%
35%
20%
25%
50%
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Polic/
"
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 No. Percentage
Leave Policy 16 27
Nothing 4 6
No Incentives 19 32
B&
Appraisal 6 10
Transfer Policy 15 25
Total 60
Mos& 0isli.e( Polic/ March-April0!
21%
32%
10%
25%
0%
0%
5%
10%
15%
20%
25%
30%
35%
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"
Interpretation: Referring or suggesting their friends to join the
Company or Not?
B<
Feedback No. Percentage
Yes 39 65
No 21 35
Total 60
Re#errin' &o ,rien(s March-April 0!
05%
35%
0%
10%
20%
30%
20%
50%
00%
10%
4es 5o
,ee(-ac.
"
Interpretation: Referring to Friends about 65 employees said that they will refer
this company to their family and friends.
BA
ANYTHING WHICH COULD PREVENT FROM DEPARTURE
Change No. Percentage
Nothing 11 18
Good Pay Package 20 33
Long Leave 4 7
Promotion 6 10
Good hr practices 10 17
Change of TL 9 15
Total 60
Pre%en&ion #ro$ 0epar&*re March-April 0!
16%
33%
1%
10%
11%
15%
0%
5%
10%
15%
20%
25%
30%
35%
5
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Prevention from departure: ~Good pay package seems to be the primary reason
which can prevent employees from leaving
BB
MA1OR FACTOR OF 1OINING NEW ORGANIZATION
Factor No. Percentage
Not 1oining any
Company 9 15
Salary 21 35
Promotion & Salary 12 20
Good hr practices 10 17
Designation 8 13
Total 60
,ac&or ,or 2oinin' ne3 or'ani4a&ion March-April 0!
15%
35%
20%
11%
13%
0%
5%
10%
15%
20%
25%
30%
35%
20%
5ot :oining
an&
9o#"an&
;alar& Pro#otion '
;alar&
8ood hr
"ractices
$esignation
,ac&or
"
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 20supports
FINDINGS & ANALYSIS
"$$
" ;--ording to the sur.e( done in 'e-h Mahindra+ the reason *hi-h prompts
emplo(ees to lea.e the -ompan( appear to beS Dissatisfa-tion *ith Pa(roll E
BenefitsS *ith#<H follo*ed b( Personal Reasons 3Relo-ation health Marriage4
as it has got #0H
# ;reas of /mpro.ementF 'e-h Mahindra emplo(ees thin) that HR poli-ies need
be impro.ed *hi-h got #5H.otes
0 'rainingF ;round &0H emplo(ees are satisfied *ith the training programmes
% /ndu-tionF ;round &$H emplo(ees thin) that indu-tion program *as adequate
5 Best Li)ed Pra-ti-esF RBi annual appraisalS appeared to be the best li)ed
pra-ti-es *hereas about the least li)ed pra-ti-e+ Rlea.e poli-(S seem to be fall in
this -ategor(
& Referring to 6riendsF ;bout <0H emplo(ees said that the( *ill refer this
-ompan( to their famil( and friends
< Pre.ention from departureF RGood pa( pa-)ageS seem to be the primar( reason
*hi-h -an pre.ent emplo(ees from lea.ing
A Ma,or fa-tor ,oining other -ompan(F RSalar(S appears to be the primar( reason
for ,oining the other -ompan(
"$"
FUTURE SCOPE - CHALLENGES FOR A HR
PROFESSIONAL IN BPO
Brand equity: People still -onsider BP9 to be ?lo* bro*?+ thus ma)ing it diffi-ult to
attra-t the best talent
Standard pre-job training: ;gain+ due to the *ide .ariet( of the ,obs+ la-) of general
-larit( on s)ill sets+ et-+ there is no standard -urri-ulum+ *hi-h -ould be designed and
follo*ed
Benchmarks: 'here are hardl( an( ben-hmar)s for -ompensation and benefits+
performan-e or HR poli-ies :.er(one is -harting their o*n -ourse
Dustomer--ompanies tend to demand better results from outsour-ing partners than *hat
the( -ould a-tuall( e7pe-t from their o*n departments ?=hen the ,ob is being done
"$+$$$ miles a*a(+ demands on parameters su-h as qualit(+ turn around timeliness+
information se-urit(+ business -ontinuit( and disaster re-o.er(+ et-+ are far higher than at
home So+ ho* to be more effi-ient than the originalC
La-) of fo-used training and -ertifi-ations gi.en this ba-)ground+ the re-ruiting and
-ompensation -hallenges of HR departments are onl( understandable
/n general a person *ith an( graduation -an ,oin an( of the BP9 Some BP91s li)e to
ta)e people *ith MB; but then again the spe-iali8ation are of an indi.idual hardl(
ma)es an( differen-e ;gain+ this is the industr(@ *here there is no referen-e -he-)s and
.er( often people don1t e.en spe-if( there e7a-t age Lets me share *ith (ou some of the
reasons as *h( people prefer to ,oin a -ompan(F
"$#
V Not get a better ,ob
V 6ind nothing better to do
V :du-ation le.el doesn1t matter
V Good *or) en.ironment
V Good Benefits
V 6le7ibilit( of time
V ;ttra-ti.e life st(le
V 'ransport fa-ilit(
WHY PEOPLE LEAVE IN BPO COMPANY?
=hen there are so man( benefits asso-iated *ith BP9 industr(*hen there are so man(
pri.ileges for the BP9 emplo(ees than *hat ma)es them to -hange the
-ompan(/industr(CC /s it onl( M9N:L that matters or an(thing else as *ellCC Here are
some of the reasons for a BP9 professional to -hange his/her ,ob
" No gro*th opportunit(/la-) of promotion
# 6or higher Salar(
0 6or Higher edu-ation
% Misguidan-e b( the -ompan(
5 Poli-ies and pro-edures are not -ondu-i.e
& No personal life
< Ph(si-al strains
A 2neas( relationship *ith peers or managers

"$0
HR RETENTION PRACTICES ADOPTED BY TECHM
;s per NHRDN has spe-ifi-all( re-ogni8ed 'e-h Mahindra for its performan-e
orientation that has be-ome -entral to the -ompan( -ulture 'he performan-e
management s(stem at the -ompan( is aligned to both+ the business goals and .alues
adheren-e 'he -ompan( .alues/ operating prin-iples are bro)en do*n into beha.ioral
indi-ators that are obser.ed and measured on a regular basis+ *hi-h in turn lin)ed to the
personal effe-ti.eness parameters in an indi.idual1s performan-e re.ie* 'here is also an
ongoing emphasis on training needs assessment and people de.elopment 'e-h
Mahindra *as also noted for its inno.ati.e pra-ti-es in the areas of attra-ting the right
talent+ re*ard and re-ognition+ promoting fun as a *ritten do*n operating prin-iple+
learning+ emplo(ee -ommuni-ation and -ompensation *hi-h are amongst the )e(
reasons for the spe-ta-ular su--ess of the -ompan(
; part from the legal and mandator( benefits su-h as pro.ident-fund and gratuit(+ these
areF --
" Group Medi-claim Insurance Scheme: 'his insuran-e s-heme is to pro.ide
adequate insuran-e -o.erage of emplo(ees for e7penses related to hospitali8ation
due to illness+ disease or in,ur( or pregnan-( in -ase of female emplo(ees or
spouse of male emplo(ees ;ll emplo(ees and their dependent famil( members
are eligible Dependent famil( members in-lude spouse+ non-earning parents and
-hildren abo.e three months
"$%
# Personal Accident Insurance Scheme: 'his s-heme is to pro.ide adequate
insuran-e -o.erage for Hospitali8ation e7penses arising out of in,uries sustained
in an a--ident 'his -o.ers total / partial disablement / death due to a--ident and
due to a--idents
0 Subsidized Food and Transportation: 'he organi8ations pro.ide transportation
fa-ilit( to all the emplo(ees from home till offi-e at subsidi8ed rates 'he lun-h
pro.ided is also subsidi8ed
% Company Leased Accommodation: Some of the -ompanies pro.ides shared
a--ommodation for all the out station emplo(ees+ in fa-t some of the BP9
-ompanies also underta)es to pa( ele-tri-it(/*ater bills as *ell as the So-iet(
-harges for the shared a--ommodation 'he purpose is to pro.ide to the
emplo(ees to lead a more -omfortable *or) life balan-e
5 Recreation, Cafeteria, ATM and Concierge facilities: 'he re-reation fa-ilities
in-lude pool tables+ -hess tables and -offee bars Dompanies also ha.e *ell
equipped g(ms+ personal trainers and sho*ers at fa-ilities
& Corporate Credit Card: 'he main purpose of the -orporate -redit -ard is enable
the timel( and effi-ient pa(ment of offi-ial e7penses *hi-h the emplo(ees
underta)e for purposes su-h as tra.el related e7penses li)e Hotel bills+ ;ir ti-)ets
et-
< Cellular Phone / Laptop: Dellular phone and / or Laptop are pro.ided to the
emplo(ees on the basis of business need 'he emplo(ee is responsible for the
maintenan-e and safeguarding of the asset
"$5
A Personal Health Care (Regular medical check-ups): Some of the BP91S
pro.ides the fa-ilit( for e7tensi.e health -he-)-up 6or emplo(ees *ith abo.e %$
(ears of age+ the medi-al -he-)-up -an be done on-e a (ear
B Loans: Man( BP9 -ompanies pro.ide loan fa-ilit( on three different o--asionsF
:mplo(ees are pro.ided *ith finan-ial assistan-e in -ase of a medi-al
emergen-( :mplo(ees are also pro.ided *ith finan-ial assistan-e at the time of
their *edding ;nd+ the ne* re-ruits are pro.ided *ith interest free loans to
assist them in their initial settlement at the *or) lo-ation
"$ Educational Benefits: Man( BP9 -ompanies ha.e this poli-( to de.elop the
personalit( and )no*ledge le.el of their emplo(ees and hen-e reimburses the
e7penses in-urred to*ards tuition fees+ e7amination fees+ and pur-hase of boo)s
sub,e-t+ for pursuing MB;+ and/or other management qualifi-ation at /ndia1s top
most Business S-hools
"" Performance based incentives: /n man( BP9 -ompanies the( ha.e plans for+
performan-e based in-enti.e s-heme 'he parameters for -al-ulation are pro-ess
performan-e ie speed+ a--ura-( and produ-ti.it( of ea-h pro-ess 'he Pa( for
Performan-e -an be as mu-h as ##H of the salar(
"# Flexi-time: 'he main ob,e-ti.e of the fle7time poli-( is to pro.ide opportunit(
to emplo(ees to *or) *ith fle7ible *or) s-hedules and set out -onditions for
a.ailing this pro.ision 6le7ible *or) s-hedules are initiated b( emplo(ees and
appro.ed b( management to meet business -ommitments *hile supporting
emplo(ee personal life needs 'he fa-tors on *hi-h 6le7i time is allo*ed to an
"$&
emplo(ee in-ludeF Dhild or Parent -are+ Health situation+ Maternit(+ 6ormal
edu-ation program
"0 Flexible Salary Benefits: /ts main ob,e-ti.e is to pro.ide fle7ibilit( to the
emplo(ees to plan a ta7-effe-ti.e -ompensation stru-ture b( balan-ing the
monthl( net in-ome+ (earl( benefits and in-ome ta7 pa(able /t is appli-able of
all the emplo(ees of the organi8ation 'he Salar( -onsists of Basi-+ D; and
Don.e(an-e ;llo*an-e 'he 6le7ible Benefit Plan -onsists ofF House Rent
;llo*an-e+ Lea.e 'ra.el ;ssistan-e+ Medi-al Reimbursement+ Spe-ial
;llo*an-e
"% Regular Get together and other cultural programs: 'he -ompanies organi8es
-ultural program as and *hen possible but most of the times+ on-e in a quarter+ in
*hi-h all the emplo(ees are gi.en an opportunit( to displa( their talents in
dramati-s+ singing+ a-ting+ dan-ing et- ;part from that the organi8ations also
-ondu-t .arious sports programs su-h as Dri-)et+ football+ et- and regularl( pla(
mat-hes *ith the teams of other organi8ations and -olleges
"5 Wedding Day Gift: :mplo(ee is gi.en a gift .ou-her of Rs #$$$/- to Rs <$$$/-
based on their le.el in the organi8ation
"$<
RECOMMENDATIONS
/t is re-ommended that the 'e-h Mahindra pro.ide their best te-hnique in
-onsidering must be adopted to -he-) the M'/ effe-t in more appropriate manner
in initial round
/t is re-ommended that the 'e-h Mahindra pro.ides their talent e7press should be
modified to grab qualit( resour-es
/t is re-ommended that the fa-ilit( management should me impro.ed li)e lo-)ers
should be gi.en to all emplo(ees
;ttrition problem in BP9 is -onsistent+ so to o.er -ome *in-*in model needs to
be de.ised for this+ satisf(ing the needs of both+ the emplo(er and the emplo(ee
Needs of the employer F 'o get ma7imum returns from ea-h emplo(ee+ re-o.er
training and de.elopment -osts+ minimi8e -ost in terms of time in training ne*
*or)for-e+ ensure that adequate no of people are there to -arr( on the pro-ess
Needs of the employee F :nri-hed ,ob profile+ better -areer path+ -hallenging
*or) en.ironment+ future prospe-ts of the ,ob
"$A
SUGGESTIONS
1. Develop an attractive employee value proposition.
;n emplo(ee .alue proposition means that (our -ompan( has something attra-ti.e to
offer that is per-ei.ed as .aluable to an emplo(ee as an emplo(er+ (ou must understand
*hat ma)es (our organi8ation attra-ti.e to potential re-ruits and -urrent emplo(ees
Branding (ourself as an emplo(er of -hoi-e is not ,ust a sli-) set of mar)eting ta-ti-s
'he best ad.o-ates for an emplo(er>s brand are its -urrent emplo(ees =hat messages do
the( send to others about their emplo(erC ;re the( honestl( sa(ing and belie.ing that+
R'his is a great pla-e to *or)S
2. Create a total reward structure that includes more than compensation.
:.er( -ompan( should ha.e all the normal -ompensation me-hanisms -ommon to their
t(pe of emplo(ment (et+ total re*ards pa-)ages go far be(ond mone( =hile mone(
might temporaril( retain emplo(ees+ it does not al*a(s equate *ith engagement People
*ant a -han-e to ma)e a differen-e and reali8e themsel.es 'hat self-reali8ation is multi-
dimensional and different for ea-h emplo(ee 'he total re*ard stru-ture should in-lude+
in addition to -ompensation+ support for emplo(ees to attain their personal ob,e-ti.es
aligned *ith the goals of their organi8ation
3. Give feedback on employee performance on a regular basis.
Most managers and emplo(ees are not enamored *ith the performan-e appraisal pro-ess
in their organi8ation (et+ an effe-ti.e performan-e management pro-ess ser.es man(
purposes 9ngoing performan-e feedba-) allo*s emplo(ees to better )no* *here the(
stand+ gi.es them a formal means to pro.ide input+ indi-ates that their managers pa(
"$B
attention to them and that their performan-e matters 'his feedba-) -ontributes to
emplo(ee engagement and retention
4. Be flexible in terms of work-life balance.
=or)ers more and more .alue a balan-e bet*een *or) and life 'he( *ant more fle7ible
*a(s to engage *ith their emplo(er 'o attra-t and retain *or)ers *ith different *or)
and -areer e7pe-tations+ organi8ations ha.e to be more fle7ible in stru-turing *or) and
its e7pe-tations /t -alls for a different managerial mindset and pra-ti-es that in.ol.e
letting go of old *a(s of -ontrolling *or)ers> time and attendan-e in fa.or of result
-riteria su-h as output+ produ-ti.it( and qualit(
5. Create a culture of engagement.
:mplo(ees ha.e be-ome more -onne-ted *ith others in the organi8ation through
pro,e-t-based team *or) and pro-ess management a-ti.ities :mplo(ees are shifting
their lo(alt( to people+ teams and pro,e-ts and a*a( from -ompan( lo(alt( /t is
organi8ations that -reate the -ulture and -limate that allo* people+ pro-esses and
pro,e-ts to be-ome full( -onne-ted and engaged *ith one another :ngaged emplo(ees
are more li)el( to sta( *ith their emplo(er
6. Train managers to be effective.
:7it inter.ie*s -onsistentl( sho* that Rpoor and badS management pra-ti-es greatl(
-ontribute to an emplo(ee>s de-ision to lea.e a -ompan( /t is imperati.e to pro.ide
super.isors and managers *ith adequate tools to be-ome effe-ti.e managers sin-e *e
-annot assume that these -ompeten-ies are innate
""$
CONCLUSION
/t is -on-luded that retention strategies adopted b( 'e-h Mahindra and other BP9>s
-ompanies it pla(s an important role for small and medium BP9s+ that has been
re-ei.ing -onsiderable attention from a-ademi-ians+ resear-hers and pra-ti-ing HR
managers /n its essen-e+ retention -omprises important elements su-h as the need or
-ontent+ sear-h and -hoi-e of strategies+ goal-dire-ted beha.iour+ so-ial -omparison of
re*ards reinfor-ement+ and performan-e-satisfa-tion 'he in-reasing attention paid
to*ards Retention is ,ustified be-ause of se.eral reasons Moti.ated emplo(ees -ome out
*ith ne* *a(s of doing ,obs 'he( are qualit( oriented 'he( are more produ-ti.e ;n(
te-hnolog( needs moti.ated emplo(ees to adopt it su--essfull( Se.eral approa-hes to
Retention are a.ailable :arl( theories are too simplisti- in their approa-h to*ards
Retention 6or e7ample+ ad.o-ates of s-ientifi- Management belie.e that mone( is the
moti.ating fa-tor 'he Human Relations Mo.ement posits that so-ial -onta-ts *ill
moti.ate *or)ers Mere )no*ledge about the theories of Retention *ill not help manage
their subordinates 'he( need to ha.e -ertain te-hniques that help them -hange the
beha.ior of emplo(ees 9ne su-h te-hnique is re*ard Re*ard+ parti-ularl( mone(+ is a
moti.ator a--ording to need-based and pro-ess theories of Retention 6or the beha.ioral
s-ientists+ ho*e.er+ mone( is not important as a moti.ator =hate.er ma( be the
arguments+ it -an be stated that mone( -an influen-e some people in -ertain
-ir-umstan-e Being an outgro*th of Her8berg>s+ t*o fa-tor theor( of Retention+ ,ob
enri-hment is -onsidered to be a po*erful moti.ator
;n enri-hed ,ob has added responsibilities 'he ma)es the ,ob interesting and re*arding
!ob enlargement refers to adding a fe* more tas) elements hori8ontall( 'as) .ariet(
helps moti.ate ,ob holders !ob rotation in.ol.es shifting an in-umbent from one ,ob to
another
"""
BIBLIOGRAPHY
BOOKS / 1OURNALS
Dharles R Greer+ Strategi- Human Resour-e ManagementF ; General
Managerial ;pproa-h+ Se-ond :dition+ Person :du-ation+ #$$A
RPer-ei.ed Super.isor SupportF Dontributions to per-ei.ed organi8ational
support and :mplo(ee RetentionS !ournal of ;pplied Ps(-holog(+ #$$A+ 5&5-
5<0
Jhane*al Rohit 36ebruar( #$$A4+ ?=inning the Retention Game?+ Human
Dapital+ Pg "$-"#
Human Resour-e Management DBMemoria
MAGAZINES & NEWS PAPERS
B2S/N:SS =9RLD
B2S/N:SS '9D;L
92'L99J
'he :-onomi- 'imes
'he Hindustan 'imes
'he Hindu Business Standard Line
WEBSITES
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***te-hmahindrabpo-om
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***bpoindiaorg
""#
ANNEXURES
QUESTIONNAIRE
Name F XXXXXXXXXXXXXXXXXXXXX
Oualifi-ation F XXXXXXXXXXXXXXXXXXXXX
Designation F XXXXXXXXXXXXXXXXXXXXX
" =hat are the reasons *hi-h are prompting (ou to lea.eC
" Higher :du-ation
# Personal Reasons
0 Dissatisfa-tion *ith pa(/benefits
% Problems *ith reporting manager 3relo-ation+ health+ marriage et-4
" Dissatisfa-tion *ith indu-tion/training
# Dissatisfa-tion *ith *or)ing -onditions
0 /nadequate -areer gro*th/de.elopment opportunities
% La-) of re*ard E re-ognition opportunities
5 ;n( other reasons3Please spe-if(4
# /n *hi-h areas are impro.ements required to be done to -hange the per-eptions of
people about the organisationC
" /mpro.ements in organisational poli-ies/pra-ti-es
# /mpro.ements in HR poli-ies/guidelines/pra-ti-es
0 /mpro.ements in ser.i-es li)e transport+ -afeteria et-
""0
% /mpro.ements in -ommuni-ation -hannels *ith team leaders/managers/Dentre
Head
5 /mpro.ements in resour-es/materials/infrastru-ture
& ;n( other areas 3Please spe-if(4
Please spe-if( the impro.ements *hi-h (ou feel are required in the abo.e areas in the
spa-e gi.en belo*
0 Did (ou find the training adequateC
/f (es *h(C
/f no *h(C
% Did (ou find the indu-tion adequateC
/f (es *h(C
/f no *h(C
5 'o *hat e7tent on a s-ale of " - "$ *ould (ou rate the leadership qualities of (our
reporting managerC
Rating "$ B A < & 5 % 0 # "

" Gi.e one pra-ti-e (ou li)ed the best and *h(
# Gi.e one pra-ti-e (ou li)ed the least and *h(
& =hat -ir-umstan-es -ould ha.e pre.ented (our departure from the -ompan(C
< =ould (ou re-ommend this -ompan( to (our famil(/friendsC
" /f (es *h(C
# /f no *h(C
Please let us )no* the ma,or attra-ting fa-tor in the ne* organisation (ou propose to
,oin
""%
;n( other -omments/suggestions *hi-h (ou *ould li)e to ma)e
""5