Project Report On

Submitted To
Prof. J.K.Jain
Management Development Institute
Submitted by: Group 6, This Report is for partial fulfillment of PGDM
(NMP), Industrial Relations course)

ACKNOWLEDGEMENT

Gratitude is a feeling which is more eloquent than words, more

tranquil than silence.

We, as a group 6 of section A, would collectively like to thank Prof. J.K.JAIN, Management
Development Institute, who gave us the opportunity to commence this project and encouraged
us throughout our project with his knowledge, experience, and valuable guidance.
We would also like to thank esteemed Interview respondents from M/s Infosys Ltd, M/s
Mphasis Ltd. who took out time to give their valuable and timely feedback which made this
project work more effective. We would also like to thank Management Development Institute for
including this project in our IR curriculum, as it added vastly to our knowledge and experience.
This acknowledgement would not be complete without thanking each and every member of the
group for the immense effort and time spend on the completion of this project.

NMP 29 Section A
AKSHAY DEWAN (29NMP07)
ASHISH BANSAL (29NMP16)
HIMANSHU S. TIWARI (29NMP32)
KHAGESH VASISHTHA (29NMP37)
PRITAM KUMARI (29NMP42)
MONU K. SANGWAN (29NMP44)

Table of Contents
1.

Introduction.....................................................................................................1

2.

What is Employee Retention?...........................................................................1

3.

Challenges in Employee Retention....................................................................2

4.

Why Retention is Important?...........................................................................4

5.

Indian Knowledge Industry (IT & ITES): Brief Introduction.............................7

Market Size...................................................................................................... 8

Some Facts and Figures about the Industry....................................................8

Reasons for the sector growth.........................................................................9

Employment Trends....................................................................................... 10

Employee retention in knowledge Era...........................................................10

Requirement of Retaining Employees in Knowledge Industry:....................11

Attrition Trend in IT industry........................................................................11

6.

Common Employee Retention Strategies Of IT Industry.................................13

Compensation Strategies:..............................................................................13

Growth Strategies:......................................................................................... 13

Support Strategies:........................................................................................ 14

Environmental Strategies:.............................................................................15

Relationship Strategies.................................................................................. 15

7.

Role of HR manager in employee retention.....................................................16

8. Retention Strategies of Infosys and Emphasis.................................................19

9.

Infosys............................................................................................................ 19

Mphasis.......................................................................................................... 20
Conclusion & Suggestions...............................................................................24

1. Introduction
In the current scenario, the world has turned into a global village and the whole globe is
reachable from any place. Now the companies are more accessible and reachable to
people and vice versa than ever before. And, so the jobs are also easily accessible for
everyone. In this scenario, the major challenge for any organization is to retain its
workforce intact. Employee retention is now a major concern and expense for every
organization.
2. What is Employee Retention?
Employee retention means many things to many people in each organization. Some
views mentioned by J. Leslie Mekeown are as under;
Employee retention means stopping people from leaving organization
Employee retention is all about keeping good people.
Getting compensation and benefits into the line with the marketplace.
Stock options, crche facilities, and other perks.
It is got to do with the organization culture and how organizations treat people.
Thus we can say that; employee retention is a process in which employees are
encouraged to stick to an organization for a maximum period of time. Employees in
todays time are different and unpredictable. As soon as they feel dissatisfied with the
employer, they switch over to next job. Since employers spend time and money to groom
employees, it is the responsibility of employer to retain their best employees. A good
employer should know how to attack and retain its employees. In any organization,
employees are the most valuable assets. And if employees are not able to use their full

1 | Page

potential and not heard and not valued, they are likely to leave the organization because
of stress and frustration.

Employee Retention Curve

Hence Employee retention is:
Keeping the right employees the most appropriate amount of time and
moving them up in the retention curve.
3. Challenges in Employee Retention
In todays context, the major challenge for an organization is to retain its valuable and
talented resources from moving on. Management keeps ways and methods to control
the problem however a permanent full stop cannot be expected at any point as there are
several challenges to it. The main challenges are cited below:
People Leave Managers, Not Companies - Poor Management: One of the
important reasons why people leave job is due to bad bosses, poor management.
Some of the common issues with inefficient management is favoritism,
directionless approach, bullying etc.
I Am Fed Up Doing Repeated Work i.e. uninteresting, monotonous work
prompts knowledge workers to look for other better challenging opportunities.
Lack of Growth Opportunities: Dearth of career development opportunities
is one of the key reasons of attrition. Not just the lack of positions but ambiguity
2 | Page

about their future growth prospects in their current organization gives them an
opportunity to think about a change for better position.

I Can Make More Money i.e. Dissatisfaction in Monetary Terms is among

most important reason which drives employees to look for a change. As most of
the companies have a salary bracket for a specific kind of role it becomes difficult
at times to negotiate and fulfil if salary demand by employee seems unrealistic.
Does my Existence make a Difference to Anyone at my Work Lack of
motivation and personal worth, lack of engagement causes employees to look for
other opportunities. If they dont feel valued personally, other benefits cant hold
them at the job.
Inadequate Support to Perform Task: Fulfilment of resource requirement if
not viewed seriously leads to employee attrition.
I am Becoming Obsolete - Unfulfilled training needs: They have a
continuous feeling of keeping themselves updated as per current trends and
technologies to maintain their market worth increasing. If not trained on time as
on functional and soft skills front knowledge workers tend to leave the
organization.

3 | Page

 Lack of Work Life Balance: It is important for an individual to have little

flexibility at work to manage his daily chorus and keep personal affairs on track.
It gives him ease of working with sound mind and increases productivity at work.
However it is not so in long run people tend to leave organization.
Over Monitoring of Employees/Encroachment of Personal Space: Selfdisciplined, self-motivated and goal focused individuals do not like to be
monitored every now and then. Employees also do not like bosses and peers to
interfere in their day to day work, access confidential information/assignments.
Such employees tend to leave organization if their highlighted grievances are not
dealt with seriousness.
I Just dont Feel like Working here i.e. Employee- Employer disconnect:
This can include any kind of issue to do with Work Culture, Policies, Work
Environment, unhealthy relationships with peers, personal circumstances etc
Job Profile Mismatch: Sometimes misrepresentation of facts by employees
regarding skillsets and exact required experience leads to wrong hiring and such
employees leave organization once they find it difficult to prove their mettle at
the job.
4. Why Retention is Important?
Lets try to understand why and how retaining a valuable employee is indispensable for
an organization?
Hiring is Tough: Hiring employees is not an easy process. The short listing of
few individuals from a large pool of talent, conducting preliminary interviews and
eventually forwarding it to the respective line managers is a very time consuming
process.
Employee Turnover: There are two types of Employee Turnover functional
and dysfunctional. When productive employees leave the organization, it is said
4 | Page

to be dysfunctional turnover and when the poor performers leave, it is called

functional turnover. Dysfunctional turnover is the concern of HR managers
because an organization invests lot of time and money in grooming to make an
employee ready to work and understand corporate culture. And if an employee
leave, HR managers need to start the same process all over again for the same job
post; a mere duplication of process. Apart from this there are massive costs to
employee turnover. Following are the costs of losing an employee.
o Costs of Recruitment
o Costs of Induction & Training a new resource
o Learning curve & Settling Time (Employee takes lot of time before they are
as good as old employees)
o Emotional cost (it results in lower productivity for the rest of the team)
o Loss of Business Ideas and Strategies
o Loss of Information and Personal Contacts

5 | Page

Turnover is costly. Life Work Solutions, a provider of staff retention and

consulting services, provides the following turnover facts and rates:
o Over 50 % of people recruited in to an organization will leave within 2
years.
o One in four of new hires will leave within 6 months.
o Nearly 70% of organizations report that staff turnover has a negative
financial impact due to the cost of recruiting, hiring, and training a

6 | Page

replacement employee and the overtime work of current employees thats

required until the organization can fill the vacant position.
o Nearly 70 % of organizations report having difficulties in replacing staff.
o Approximately 50% of organizations experience regular problems with
employee retention.
From these statistics its clear that its clear that high turnover is bad for
organizations hence employers should focus on retaining employees and keeping
the turnover low.
Company Loss; Competitors Gain: Whenever an employee leaves the
present organization, it is more likely that he will join the competitor. In todays
time business information is critical , so When employees leaves, they take all
new strategies, and polices from current organization to new one, this results in
company losing lot of precious information.
Impact on Business: When an employee leave, the project on which he was
working comes to a halt and it becomes very difficult to find a quick substitute
who can work on the ongoing project. Hence results in not able to serve the client
and thus affecting companys credibility.
5. Indian Knowledge Industry (IT & ITES): Brief Introduction
Since its beginning, the IT industry has been in news for many reasons, mainly because
of the revenues it has been making and the employment it has generated for lots of
people. The Information technology industry in India has gained a huge
acknowledgement and has become a brand identity as a knowledge economy due two
major components: IT Services and business process outsourcing (BPO). Together ITITES sector has contributed substantially in the increment of our country GDP,
employment and exports.
Market Size

7 | Page

The Indian IT sector is expected to grow at a rate of 12-14 per cent for FY2016-16 in
constant currency terms. The sector is also expected triple its current annual revenue to
reach US$ 350 billion by FY 2025, as per National Association of Software and Services
Companies (NASSCOM).
Some Facts and Figures about the Industry
The industry has led the economic transformation of the country and changed the
perception of India in the global market. Indias main USP in the global sourcing
market is its cost competitiveness in providing IT services. However, India is also
gaining prominence in terms of intellectual capital with several global IT firms
setting up their innovation centers in India
o Indias technology and BPM sector (including hardware) is estimated to
have generated US$ 146 billion in revenue during FY2014-15 compared
to US$ 118 billion in FY2013-14, implying a growth rate of 23.72 per cent.
o The contribution of the IT sector to Indias GDP rose to approximately 9.5
per cent in FY2014-15 from 1.2 per cent in FY1997-98.
o The top six firms contribute around 36 per cent to the total industry
revenue, indicating the market is fairly competitive, with TCS being the
leader accounting for about 10.1 per cent.
o The IT-BPM sector in India expanded at a CAGR of 15 per cent over 2010
15, which is 34 times higher than the global IT-BPM growth, and is
estimated to expand at a CAGR of 9.5 per cent to USD300 billion by 2020.

8 | Page


o
o
o
o
o
o

Reasons for the sector growth

Rapid industrialization and growth of IT parks in the country
Partial privatization of telecommunication
Development of SEZ; which also help IT companies get tax benefits
A large number of resource readily available in the country
Low operating costs
Tax breaks and sops offered by the government
Employment Trends
During FY08-15 number of new hires addition to talent pool in India grew at a
CAGR of 9.4 percent & it added around 5.8 million new hires to its existing talent

pool.
Employee retention in knowledge Era
Ongoing developments in information technology and globalization of the world
economy have contributed to the significant onward march of the knowledge era.
Knowledge era is a new, advanced form of capitalism in which knowledge and
ideas are main source of economic growth. New patterns of work and new
9 | Page

business practices have developed and as a result new kind of employees with
new and unique skills are needed. In the present scenario, the retention of
knowledge worker has become extremely critical for the success for a business
organization and Information technology is not just one of the fastest growing
industry in India but it also plays a major role in driving the nations economy
onto a positive growth curve and has highly contributed in changing Indias
image from a sluggish developing economy to a global leader in technology on
which many countries can rely for world class technology solutions. With a highly
competitive market and a big requirement of IT professional it becomes very
important for an organization to retain their best talent to main the sustainability
and productivity of the organization. When an employee leaves, it takes
approximately eight weeks for this position to be replaced and in the meantime,
productivity suffers. In this report our focus is to understand why knowledge
workers leave organization and what Retention Strategies are used by companies.
Requirement of Retaining Employees in Knowledge Industry:
Andrew Carnegie, famous industrialist of 19th century who is known for having
built

one

of

the

most

corporations in US once commented,

Take
away
my
factories,

powerful
my

plants;

and
take

influential
away my

railroads, my ships, my transportation, take away my money; strip

me of all of these but leave me my key people, and in two or three
years, I will have them all again.
Since the IT Industry is totally reliant on of its employees, hence the employees
should be given the first priority over new hiring, secondly as per research
retention is more cost effective than hiring. According to LBW Consulting
(Leadership in Business, Worldwide),
10 | P a g e

The cost of replacing an employee ranges from 29% (nonmanagement) to 46% (management) of the person's annual salary.
As per research, there is a co-relation between retention rate and an
organization's

performance

in

customer

satisfaction,

productivity

and

profitability. Organizations face a lot of problem, as a high turnover rate may

lead to under productivity. To evade such circumstances, organization have to
acclimatize retention strategies to make employees stay for adequate period in
which the employee is able to contribute and perform.
Attrition Trend in IT industry
o With an employee base of over one lakh each, the biggest challenge for
Indian IT companies is keeping a check on attrition rate. However, this
year something interesting has happened.
o The countrys largest company Tata Consultancy Services (TCS), has been
striving to contain its rising employee attrition rate, however its
competitors like Infosys, Wipro and HCL Technologies have not only
managed to bring it down but also succeeded to keep it under control.
o One interesting fact is that among all the company, TCS has traditionally
enjoyed lower employee attrition rate, but it has been rising over the year.
o For example, at the end of second quarter of FY15, TCS attrition rate was
12.8%, and a year later, at the end of Q2FY16, it has touched 15.5%. On the
other hand, Infosys, At the end of September quarter, 2014, the attrition
level was 21.1%, but one year down the line, it has come down to 14.1%.
However, the other two major Wipro and HCL have managed to keep their
attrition level steady at around 16% over the past one year.

11 | P a g e

Source: Financialexpress.com

6. Common Employee Retention Strategies Of IT Industry

Retaining quality performers contributes to productivity of the organization and

increases morale among employee. Companies have now realized the importance of
retaining their quality workforce and are following a variety of creative and effective
ways to retain their employees which are mentioned below:
Compensation Strategies:
o Performance Linked Bonus: Most of the companies offer Performance
Linked Incentives to their staff part from their fixed component of salary
commensurate to the level of performance shown by the employee. Net
Manage, the Cupertino, the California Software manufacturer, rewards
virtually all staff members with a company paid vacation to a resort when
sales goals are reached.
o Stock Options: These are often given as part of employees CTC to make
them feel part of the company and make them shareholders in a sense.
Wipro, has been trying to reward employees through a more tangible
process by dolling out 5.7 million shares as restricted stock units to its

12 | P a g e

mid-management employees. This was followed up with a band

restructuring programme that saw 20,000 junior level employees being
promoted at a 7-8% salary hike in the second quarter of the fiscal
o Referral Awards: As a part of recruitment drive, many companies are
offering their existing employees a certain amount for bringing their
competent friends/acquaintances to the company subjects to the referred
employee spending minimum time duration at the company.
Growth Strategies:
These involve helping employees to pursue their aspirations for career growth:
o Internal Selection Process: First preference is given to employees in case of
new openings created in the company given that they meet the Job
Description.
o Job Rotation: Cross functional opportunities are made available to the
bright and willing employees for better understanding of business and
their holistic growth. Google, which finds that offering flexibility and
freedom of movement across projects have kept employees glued. We try
to get employees to spend 20% of their time on projects other than their
primary ones. This encourages innovation in product development and
foster inter-team communication, said Jayashri Ramamurti, head-people
operations, engineering & product, Google India.
o Career Growth related Guidance: Executives from personnel department
conduct workshops to familiarize employees about their growth prospects
in the organization as per their current role.
Support Strategies:

13 | P a g e

o Competency Development: This includes addressing the functional and

behavioral training needs of employees in order to continuously upgrade
the knowledge and skills.
o Few years ago, Infosys launched Pathfinder, which is a career movement
programme. As a part of this initiative, 23,000 people have gone through
career workshops to understand more about their options.
o Certifications: In IT Industry technological up gradation is very much
sought. Some companies sponsor the necessary certifications to their
employees which would help them not only perform better in their current
roles but also enhance their skill set.
Environmental Strategies:
o Flexi Timings: Many companies are following this method where
employee can contribute to work as per their convenient timings. This
model is mostly feasible where day to day interaction among team
members is not much required. There is specific time window when all
employees can remain present to discuss the important matters which
need everyones attention. Flexi time helps employees to maintain work
life balance and in turn helps them to have better concentration at work.
o Positive Work Environment: It has to do with creating and maintaining a
workplace that attracts retains and nourishes good people. This includes a
number of issues ranging from Policies, Guidelines, Procedures, Work
Culture, and Mission & Value system of company. Companies must focus
on these issues at macro level which yields result on long term employee
retention plans and improves brand image of company as well. Intel
Corporation, the giant computer chip maker with seven U.S Site offices,
requires all employees to attend seven seminars focusing on corporate
14 | P a g e

culture, values and business ventures during their first year of

employment.
Relationship Strategies
o Reward & Recognition: There are number of ways to give employees a due
recognition to the performing employees. Appreciation Letters, Emails,
Cards, Employee of the month awards, Star performers Award are some of
the ways to boost the morale of employees.
o Buddy Connect Initiatives: Under this programme every new employee is
assigned a buddy to answer their general queries and to ease the transition
of new employee.
o Lifecycle related leaves and benefits: there are various situations like
maternity leaves, spouse transfer, emergency leaves where companies are
offering an opportunity to the employees to avail leaves without pay.
o Respect for Employees: Most of the companies now days are putting up in
place the programmes which show the respect and concern the companies
have for their employees.
o Say, at Starbucks employees are called as Partners and at some other IT
Organizations they are called as associates. This gives a sense of
belongingness to employees and they connect with their companies in a
better way.
7. Role of HR manager in employee retention
An organization cannot continue if the best performers leave the organization. It need
people who are faithful and work hard with full diligence to accomplish the
organizations goal. An employee who stays for a longer duration with organization is
acquainted with the rules, guidelines and policies of the organization and thus can
accustom to environment in better way. The Human Resource team plays an important
role in employee retention. The role of HR manager is
15 | P a g e

 When an employee resigns, it is the duty of the HR to intervene immediately to

find out the probable reasons which prompted the employee to resign. No one
leaves an organization without a reason. There has to be one and the human
resource team must probe into it. There can be innumerable reasons for an
employee to leave his current job. The major ones being conflict with the
superiors, lesser salary, lack of growth, negative ambience and so on.
It is the duty of the HR to sit with the employee and discuss the various issues
face to face. Understand his problems and listen to his side of the story as well.
Remember the HR should not focus on conducting exit interviews, rather more
emphasis should be laid on retaining the employees.
Try to provide a solution to his problem. Hiring is a tedious process and it is
really very difficult to recruit the right candidate and train him once again. Do
check the track record of the employee who wishes to move on. It is really
essential for the management to retain those employees who have the potential
and are really indispensable for the organization. If they leave and join the
competitors; the organization would be at loss. If one feels that the employee is
not very happy with his team leader, try to shift him to a new team. If the
employee feels his salary is not justified, try to give him a hike but make sure he is
worth it and you dont end up upsetting others.
The HR person must ensure that he is recruiting the right employee who actually
fits into the role. A right person doing the wrong job would never find his job
interesting and certainly look for a change.
Make sure every individual has been assigned responsibilities according to his
specialization and interest. The employees must be clear with their KRAs from
the very beginning.

16 | P a g e

 Every individual works for money and the HR must quote a justified salary
acceptable to the other person. Dont compel anyone to join at a lesser salary. He
might join at that moment but would most likely quit after sometime. The hike
should be on the present salary and must match the market trends and the
expectations of the individual.
The human resource department must conduct motivational activities at the
workplace. Organize various internal as well as external trainings which help the
employees to learn something extra apart from their routine work.
Make them participate in extracurricular activities important for their overall
development. Encourage them to interact with each other so that the comfort
level increases.
The HR must launch various incentive schemes for the top performers to
motivate them. This way the employees feel important for the organization and
strive hard to perform even better the next time.
The employees who show promise should be awarded with cash prizes, lucrative
perks and certificates to make the individual stand apart from the crowd. Send a
mail wishing the employees on their birthdays or congratulating them when they
perform exceptionally well or come out with something innovative.
A friendly atmosphere is essential for the employees to feel safe and secure. Make
them participate in various management decisions making.
Performance reviews are a must. The HR along with the respective team leaders
must monitor their team members performance to ensure whether they are
enjoying the work or not.
The employees look for a change only when their job becomes monotonous and
does not offer any growth or learning. Job rotation can be one of the effective
ways to retain employees.

17 | P a g e

 The HR professional must try his level best to motivate the employees, make
them feel special in the organization so that they do not look for a change.
8. Retention Strategies of Infosys and Emphasis
Infosys

Infosys is a global leader in consulting, technology, and outsourcing and nextgeneration services. Infosys is the second-largest Indian IT services company by
2016 revenues. Infosys was co-founded in 1981 by 7 Engineers Narayan
Murthy, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S. D. Shibulal, K.
Dinesh and Ashok Arora after they resigned from Patni Computer Systems.[11][12] The
company was incorporated as "Infosys Consultants Pvt Ltd. Infosys has a growing
global presence with more than 194,000 employees.
Interview on retention strategies of Infosys
Person Interviewed: Mr. Zia Ul Haq, Sr. Manager HR, Bengaluru
o Does the company suffer from high employee turnover/
attribution rate?
Attrition rate is more or less the same in all the companies across a
particular industry. For example in IT industry it varies from 15 to 20
percent.
o What are the major reasons for employee attrition?
Professional aspirations
Feeling stagnated
Company policies and work culture
Relationship with boss and peers
Personal reasons
Higher studies
o If
company
is
suffering
is
from
high

employee

turnover/attrition rate then what is company doing to curb it?

18 | P a g e

o If no

Flexible work culture

Transparency in policies
Rewards and recognition
Employee engagement through various activities
Work from home for family care
then what strategies the company has used to minimize it

or how the company is retaining its people?

Every individual is different, culture of constant feedback from employees
and counseling has helped retain the employees.
o Are there separate retention policies for different employees?
Yes as mentioned above.
Mphasis

Mphasis is a leading IT solutions provider, offering Applications, Business

Process Outsourcing (BPO) and Infrastructure services globally through a
combination of technology knowhow, domain and process expertise. Mphasis
Limited was formed in June 2000 after the merger of the US-based IT consulting
company Mphasis Corporation (founded in 1998) and the Indian IT services
company BFL Software Limited (founded in 1993). Mphasis ranked 7 in India IT
companies and overall 165 by Fortune India 500 in 2011 Mphasis employees
around 22302 employees.
Interview on retention strategies of Mphasis
Person Interviewed: Mr. Hemant Sankhla, Manager Strategic
Mgmt., Bengaluru
o Does the company suffer from high employee turnover/
attribution rate?
Yes attrition is a major challenge in IT and especially it BPO industry the
attrition figures vary company to company but fairly across the industry in
IT sector it is about 12 to 25% and BPO industry the attrition ranges from
50% to 200%
o What are the major reasons for employee attrition?
19 | P a g e

Attrition also varies from the level of experience in the initial layers
and employee is usually keen on adding more to the financial
aspects hence, this becomes a major factor for him to switch jobs at
senior level an employee Looks for more intellectually challenging
work Where he can add value to his own profile In BPO industry
attrition is a major challenge and a reason for the attrition is
extremely tough work conditions BPO industry typical agent or a
call centre employee would be either taking somewhere between
hundred to 600 calls in an day the work is repetitive manual which
does not have any scope of intellectual challenge hence after certain
time and employee feels he is not adding any value to the company
and to himself which becomes a major reason for him to take a
decision of moving on another job another role another Company
there are multiple other reasons also for an employee to switch to
another company reason which happens quite often especially
among the female candidates is the hostile work environment which

also becomes a factor which leads to attrition

Another reason special in India for the female candidates to move
on could be used by family reasons relocating to another city where

the spouses are working

About all the reasons why the attrition numbers are driven by an
employee there are reasons our company insurance there is a
healthy attrition this healthy attrition can be due to multiple
reasons first non-performance second business related third
automation which is factoring in 2 large amount of attrition in BPO

20 | P a g e

and IT industry with the large players coming in like groups

automation anywhere they are creating a pool of virtual workforce
i.e. robots
company

o If

is

suffering

is

from

high

employee

turnover/attrition rate then what is company doing to curb it?

Controlling attrition is one of the most important factors which
drives in the HR policies of a company given that IT industry is a
knowledge base industry where is human workforce is of
Paramount importance and hence the number of policies and
programmes are tailor-made to control and engage employees
which also ensure a low attrition so if I talk about IT industry there
are number of project level driven initiative employee engagement
project outings It helps create a bond between the employees this is
even more important in the BPO work environment where the
employees have to have a lower stress levels during the shift timings

and repetitive work

Attrition is also a factor on the industry maturity if the industry is
upcoming as a Technologies upcoming the addition will be fairly
high the reason is there are multiple players entering into the
market and same time competing for Limited talent pool if an
industry is inside a method stage of the technology and methods
over a period of time there is a high possibility to the Employees
will not switch the jobs very easily unless they find something really
interesting financially and otherwise for them to switch jobs as the
employers have abundance of a resource pool available to them

21 | P a g e

which can be replaced easy and it is a myth that there is no action

there is always an interesting and the address has been increasing
over the past few years
o Are there separate retention policies for different employees?
Absolutely policies are made generic for the company but they are tailored
for specific high potential individuals and key areas in the company, for
example, a company which offers products as well as services the policies
for product support product management product development employees
will focus very prominently on retaining the existing workforce given the
knowledge which they have come over because I'm working on the IP.
9. Conclusion & Suggestions
The above literature definitely concludes one thing that the reasons, employees leave the
organization is very different from the reasons because of which they stay in the
organization. It is very much like the Herzbergs two factor hygiene theory. The hygiene
factors are the one without which the employee will leave the organization such as
salary. But the motivating factors are one which will actually pursue them to stay in the
organization like Recognition and Work Life balance. This means that trying to have a
lower attrition rate would not increase the retention rate. For making the employees
wanting to stay in the organization, it is necessary to provide them with the following in
order of their importance.
Make career paths clearly visible. The organizations which offer career and
not jobs are able to retain employees to a greater extent. Believe in the strategy of
promoting from within, so that other employees are motivated to stay back for the
position they dream of. Moreover, make these paths and careers easily visible to
them.
22 | P a g e

 Recognition can fulfill the self-actualization need. Every person has the
need to be appreciated for his/her efforts. Recognizing or appreciating the work of
employee boots his morale and he feels that he is contributing something to the
organization.
Be more flexible: Flexibility in terms of work timing and work itself can offer the
advantage of retaining employees. By allowing some flexibility in an employees
schedule you can allow his to perform his off job duties as well.
Make your company a place where people would want to come to work
The work that is being done in the IT sector is mainly on computer, making the
work tiring and monotonous, creating a work environment which promotes
positivity includes clarifying the mission, communicating positive feelings, being
fair and honest, cultivating a feeling of family, promoting integrity, insisting on
workplace safety, reducing the number of meetings and most importantly- Making
work fun rather than a Load
Beginning at the Beginning: Hire correctly--find people who not only look
good on paper but are comfortable with your company's values and corporate
culture. Make sure that there are no surprises on either side by giving full
disclosure and ruling out inappropriate expectations even before the person starts
work. Companies should screen for cultural fit and attitude, among other things,
rather than just for skills that new employees can easily acquire through training.
Creating Equitable pay and Performance Processes: Employers should use
a variety of hard (monetary) and soft (non-monetary) employee compensation
strategies to make it difficult for other companies to steal their people away. These
include Discussing total employee compensation (salary, benefits, bonuses,
training, etc.) Designing reward systems to stimulate employee involvement.

23 | P a g e

 Work-Life Strategy: Remember, only a happy employee will prove to be a

productive employee, and in spite of offering high salary, if the employee is not
able to spend leisure time with his family, he will not be satisfied with the work. So
design policies which can offer work life balance to employees, which can include
compulsory paid leaves, fixing the time of work, weekends off etc.
Finally we have to know who is responsible for

Retention:

The Supervisor, The Second level Supervision, The HR Department or the Senior
Management. The answer is all of them. We often hold the top management
responsible for not able to retain employees. But the fact is, each supervisor is
equally responsible for retaining all employees under him, because it is the
immediate supervisor who interacts with the employee the most. At the same time
the HR department must find ways to train and develop employees according to
their capabilities, also they must find our reasons of people leaving the
organization through Exit Interview, And Finally the Senior management must
maintain an open door policy and support recommendations of the supervisor.
Keep in mind that employee compensation constitutes only one piece of the puzzle.
If all the other pieces the environmental, relationship, support and growth
strategies don't fit together into one interlocking whole, you won't be able to pay
people enough to work for you.

24 | P a g e

References

NASSCOM Report
Team Lease Employee Survey Report

http://pioneerjournal.in/conferences/tech-knowledge/15th-nationalconfernce/3897-emerging-employee-retention-strategies-in-it-industry.html
http://www.ibef.org/industry/information-technology-india.aspx
https://www2.deloitte.com/content/dam/Deloitte/in/Documents/humancapital/in-hc-deloitte-india-annual-compensation-trends-survey-report-fy2016-noexp.pdf
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCa
pital/gx-dup-global-human-capital-trends-2016.pdf
https://www.shrm.org/Research/SurveyFindings/Documents/2015-JobSatisfaction-and-Engagement-Report.pdf
http://www.financialexpress.com/article/industry/companies/it-attritionfaces-seesaw-effect/156435/
http://www.managementstudyguide.com/role-of-hr-in-employee-retention.htm
http://www.ibef.org/industry/information-technology-india.aspx

25 | P a g e