A SUMMER PROJECT REPORT

ON

“Benchmarking Retention Policies

Public Sector v/s Private Sector
AT
NTPC Limited”

Submitted in partial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Submitted by

PUNEET NANDA
Enroll no: 06212303909

DELHI INSTITUTE OF ADVANCED STUDIES

Guru Gobind Singh Indraprastha University, Delhi

JUNE-JULY 2010

ACKNOWLEDGEMENT

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I would like to acknowledge the efforts of many individual who have helped brining this project on
“Benchmarking retention techniques” to a successful completion.

Firstly I would like to thank Ms. QURATULAIN KHALID, DGM (HR-Rect.) for giving me the
wonderful opportunity to undertake this project at NTPC. Her expert guidance and suggestions helped
me to make this project a successful one.

I would like to extent my gratitude to my industry guide Ms DEEPA GURNANI for her deep interest in
the subject helped me to refine my ideas to reflect on the topic. Her patience, continuous guidance and
support enabled me to understand the relationship between recruitment and retention and thus gave me a
better insight to the retention techniques.

I would also like to thank all the members of the Recruitment department for their helpful support to
make the successful completion of this project possible.

I would like to show my greatest appreciation to my faculty guide Ms. N. Malati, for her tremendous
support and guidance which helped me a lot to in completion of the project.

Puneet Nanda
(06212303909)

MBA – 3A

EXECUTIVE SUMMARY

This study examines the practices that companies can use to overcome the challenges
that organizations face with employee retention in an increasingly competitive labor
market. Just competitive salaries aren't the lone factor in reducing turnover. As this study
illustrates, other uses of the money are also very effective.

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It also analyzes the current retention practices in the organizations across public and
private sector and thus providing a benchmark of practices for effective talent retention
irrespective of different sectors, different industries and different companies.

The project includes the factors such as:

• Social Practices.
• Financial Practices.
• Non-Monetary Incentive Practices.
• Transparent Work Culture and Communication Practices.
• Quality Work Environment and Work Life Balance Practices.
• Empowerment Practices.

TABLE OF CONTENTS

TOPIC PAGE NO.

1. INTRODUCTION
1.1 Objective

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 1.2 Research methodology

2. COMPANY PROFILE

3. LITERATURE REVIEW

4. CONCEPTUAL FRAMEWORK

5. ANALYSIS & FINDINGS

5.1 Data Analysis And Interpretations

6. FINDINGS AND SUGGESTION

6.1 Key Findings
6.2 Suggestions
6.3 Conclusion
6.4 Limitations

7. ANNEXURE
7.1 Questionnaire

8. BIBLIOGRAPHY

9. MISCELLANEOUS

INTRODUCTION

The benchmarking project was taken to focus on the retention policies and procedures to help the
company compare the practices followed, with the opinion of the market trend. The HR team can
identify, attract, and retain outstanding employees by understanding and adapting the effective and
innovative practices that the companies are all ready using. Leading companies seek a deeper
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understanding of how to best manage their talented employees to meet short term goals as well as long
term strategic goals.

The insight and best practices showcased in this report are distilled from lessons learned from
interviews with executives who have intensive experience in designing implementing and managing
HRD and Retention systems. This research is a combined body of knowledge concerning excellence in
talent retention, which will provide a value able operational compass to guide NTPC corporate efforts to
improvise its retention policies to attain a best in class retention system. The retention policies are of
paramount importance in order to retain its human resource which enables the company to fulfill its
corporate aims and objectives, control budget for recruitment. A good retention policy and procedure
promotes and support good practice for those with responsibility for employee engagement.

It is necessary to regularly review HR policies to ensure growth of an organization.

Obsolescence comes faster than it is spelt. Similarly, policies have to be monitored continuously and
modified based on the projected needs. Policies should contribute to the achievement of the objective of
an organization and not hinder its growth and vision. In industries where knowledge transfer takes place
and hence, it needs policies and procedures in place. Thus, developing retention & engagement policy
and procedure through benchmarking features as a critical activity in the business world as it is a vital
approach for sharing and transferring knowledge. Companies across globe have embraced these but
have done so with a varied level of success. Some have managed to create huge marketplace advantages
whilst others have fared less favorably.

The purpose of this research is to establish the level of benchmarking activity and application to create
best-in-class engagement system. The information gathered included both the hard and soft issues
associated with benchmarking and following analysis, attempted to evaluate the level of benchmarking
maturity reached across different industry fields and size of operation. This study helps undertaking
what leads to effective benchmarking and development of best practices for Employee Retention and
Engagement.

As retention management is a highly topical subject and an important dilemma many organizations
might face in the future, if not facing it already.

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International competition, the rapidly growing size and complexity of organizations, the changing
values, career concerns and the structure of workforce- all these and a host of other factors have made
the traditional approach to personnel management absolute. The current trend demands a more
comprehensive, more strategic perspective recruit utilize and conserve valuable human resources.
Making effective selection decisions for personnel and effectively retaining them is one of the most
important functions of HRM, which comprises the following sub functions:

• Determining the nature of jobs to be filled.

• Determining the type of personnel required.
• Determining the source of recruitment.
• Determining the selection process.
• Determining the factors responsible for employee engagement.
• Determine what retention practices to be followed.
Employee retention is a process in which the employees are encouraged to remain with the organization
for the maximum period of time or until the completion of the project. Employee retention is beneficial
for the organization as well as the employee. Employees today are different. They are not the ones who
don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the
job, they switch over to the next job. It is the responsibility of the employer to retain their best
employees. If they don’t, they would be left with no good employees. A good employer should know
how to attract and retain its employees.

NTPC uses systematic and standardized practices for employee retention management which results in
NTPC having one of the biggest pools of talented, skillful as well as satisfied and engaged employees,
as NTPC has become a Social Status for its employees. And NTPC secured 7th rank amongst the top
ten companies in the “India’s Best Companies TO WORK FOR”; A study by THE ECONIMICS
TIMES & GREAT PLACE TO WORK INSTITUTE INDIA.

OBJECTIVES OF THE PROJECT

• To identify the best retention policies/practices across the industry.

• To analyze the consistency of best practices with respect to Public Sector vs. Private Sector.

• To suggest the strategies and steps for reducing turnover and improving retention.

• To analyze policies practices and procedures of various companies that may help to eradicate
obsolete procedures, thereby maximizing the effectiveness of retention practices.
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 Thus the study would help the HR department of NTPC shift into a more strategies role. It would
bring in focus the effectiveness of the retention policy and practices of NTPC.

RESEARCH METHODOLOGY

This chapter explains the methods used to carry out the study, giving special emphasis to the treatment
and techniques used to analyze the data.

✔ As an initial step in developing this project, the policies practiced at NTPC were studied
thoroughly.
✔ Then a study was done to know the various policies practiced at NTPC.
✔ Based on the data available and on the experience of the HR department of NTPC, an initial list
was developed which grouped policies under different heads as per their effective results.
✔ Then a study/survey was conducted which covered many reputed companies across Delhi NCR,
both public and private sector.

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 ✔ The approach and methodology followed for data collection and analysis was the same for all
the companies.
✔ The second phase involved studying the requirement of retention policies as per different sectors
and work profile of the employees, through various interviews with HR executives.
✔ The purpose of the interviews was to gain an in depth understanding of trends and issues related
to the practice of various retention policies across public and private sector companies at both
the corporate and departmental levels.
✔ After reviewing the feedback from the interview process, the data was finalized to review the
potential best practice activities and identify the corporate recruitment programs.
✔ The third phase involved comparing and benchmarking the retention policies and procedures of
NTPC against other public and private sector companies.
✔ After collecting data at the departmental level, best practices were assembled to identify
horizontal trends across departments.

Type of Research: Explorative

Population: HR Executives

Sample Size: 65

Sampling Technique: Convenient Sampling

INSTRUMENTS DEVELOPED

There was a single booklet of questionnaire consisting of 4 pages; the whole questioner was
divided into different set of questions. It was prepared on the basis to assess NTPC on various
grounds of retention and engagement policies and procedures practiced.

A. General questions on Retention Policies and there practice standards.

B. Questions on effectiveness on various measures for talent retention.
C. Question on views about retention practices that need to be practiced.

The questionnaire was structured in a way so that some of the questions could be measured on
Likert Scale and the rest of the questionnaire was build up on dichotomous questions.

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 Administration of one book let of questionnaire took approximately 5-7 minutes.

TOOLS OF DATA COLLECTION

Both primary and secondary data were collected for the analysis.

1. Primary Data:

✔ The information about various retention and engagement practices in NTPC was collected by
talking to the HR personals across different HR departments in NTPC
○ .

✔ For finding out the best practices for retention and engagement of employees at NTPC,
questionnaires were administered to people as per the target.

✔ For the purpose of benchmarking, information about the various retention practices was sought
form HR staff of different companies via e-mail and interviews.

1. Secondary Data:

✔ Secondary data was collected for the purpose of effective and successful benchmarking.
Information about the various recruitment activities of different companies was collected from:
✔ Organizational brochure on INTERNET.
✔ Organizational Manuals.
✔ Previous records and documents of organizations on INTERNET.

STATISTICAL METHODS & TECHNIQUES USED FOR DATA ANALYSIS:

✔ Mean response method is use extensively to evaluate the responses.

✔ Various charts and graphs are used to presents the analyzed data such as-

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 ○ Pie Chart
○ Bar Graphs

OVERVIEW OF THE COMPANY

NTPC Limited (Formerly National Thermal Power Corporation) is the largest state-owned power
generating company in India. Forbes Global 2000 for 2009 ranked it 317th in the world. It is an Indian
public sector company listed on the Bombay Stock Exchange although at present the Government of
India holds 84.5%(after divestment the stake by Indian government on 19october2009) of its equity.
With a current generating capacity of 31134 MW, NTPC has embarked on plans to become a 75,000
MW company by 2017. It was founded on November 7, 1975.

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Figure 1 Installed Capacity & Generation of NTPC

NTPC's core business is engineering, construction and operation of power generating plants and
providing consultancy to power utilities in India and abroad.

The total installed capacity of the company is 31134 MW (including JVs) with 15 coal based and 7 gas
based stations, 4 Joint Venture Projects (1,054 MW). NTPC acquired 50% equity of the SAIL Power
Supply Corporation Ltd. (SPSCL) located across the country. In addition under JVs, 3 stations are coal
based & another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expected
to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas,
9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from
Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries
and takeover of stations. NTPC has set new benchmarks for the power industry both in the area of
power plant construction and operations. It provides power at the cheapest average tariff in the country.

NTPC has been operating its plants at high efficiency levels. Although the company has 18.79% of the
total national capacity it contributes 28.60% of total power generation due to its focus on high
efficiency. NTPC’s share at 31 Mar 2001 of the total installed capacity of the country was 24.51% and
it generated 29.68% of the power of the country in 2008-09. Every fourth home in India is lit by NTPC.
170.88BU of electricity was produced by its stations in the financial year 2005-2006. The Net Profit
after Tax on March 31, 2006 was INR 58,202 million. Net Profit after Tax for the quarter ended June
30, 2006 was INR 15528 million, which is 18.65% more than for the same quarter in the previous
financial year. 2005).

Figure 2 NTPC in Indian Power Sector

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In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue
and 5.25% as offer for sale by Government of India. NTPC thus became a listed company in November
2004 with the government holding 89.5% of the equity share capital. The rest is held by Institutional
Investors and the Public. The issue was a resounding success. NTPC is among the largest five
companies in India in terms of market capitalization.

The concept of Corporate Social Responsibility is deeply ingrained in NTPC's culture. Through its
expansive CSR initiatives, NTPC strives to develop mutual trust with the communities that surround its
power stations.

NTPC is committed to the environment, generating power at minimal environmental cost and
preserving the ecology in the vicinity of the plants. NTPC has undertaken massive a forestation in the
vicinity of its plants. Plantations have increased forest area and reduced barren land. As a responsible
corporate citizen, NTPC is making constant efforts to improve the socio-economic status of the people
affected by its projects. Through its Rehabilitation and Resettlement programs, the company endeavors
to improve the overall socio economic status Project Affected Persons.
NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding
(MOU) with the Government in 1987-88. NTPC has been placed under the 'Excellent category' (the best
category) every year since the MOU system became operative.

NTPC’s VISION
"A WORLD CLASS INTEGRATED POWER
MAJOR, POWERING INDIA’S GROWTH, WITH
INCREASING GLOBAL PRESENCE."

“DEVELOP AND PROVIDE RELIABLE POWER, RELATED PRODUCTS

AND SERVICES AT COMPETITIVE PRICES, INTEGRATING MULTIPLE
ENERGY SOURCES WITH INNOVATIVE AND ECO-FRIENDLY
NTPC’s MISSION
TECHNOLOGIES AND CONTRIBUTE TO SOCIETY.”

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CORE VALUES

This corporate plan provides details of the overall agenda for NTPC. The successful delivery of this
agenda would require a committed work force that identifies with and supports the vision. To ensure
realization of this corporate agenda, a set of core values should be central to, and govern each activity of
the organization.

Known as one of the MAHARATNAS’s of the PSU’s NTPC has its following core values. They are
known as (BCOMIT) as follows: -

B-Business Ethics
C-Customer Focus
O-Organizational & Professional pride
M-Mutual Respect and Trust
I- Innovation & Speed
T-Total quality for Excellence

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THE HUMAN RESOURSE

Powering India’s Growth: Through People

It strongly believes in achieving organizational excellence through Human Resources and follows
"People First" approach in order to leverage full potential of its 25,000 strong workforce.

At NTPC, People before Plant Load Factor is the mantra that guides all HR related policies. NTPC has
been awarded No.1, Best Workplace in India among large organizations and the best PSU for the year
2009, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.
All HR initiatives are undertaken within this broad framework to actualize the HR Vision of "enabling
the employees to be a family of committed world class professionals making NTPC Ltd a learning
organization.

To induct talent and groom them into dedicated cadre of power professionals “Executive Trainee”
Scheme was introduced in the year 1977 for recruitment in the disciplines of Mechanical, Civil,
Electrical, control and instrumentation, HR and finance disciplines also. Besides a comprehensive one
year training comprising theoretical inputs as well as on-the-job training, the new recruits are also

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attached with senior executives under a systematic and formal ‘Mentoring System’ of the company to
integrate them into the culture of the company.

As part of post employment training and development opportunities, a systematic Training plan has
been formulated for ensuring minimum seven man days training per employee per year and includes
level wise planned intervention designed to groom people for assuming positions of higher
responsibility, as well as specific need based on scientific Training Needs Analysis. NTPC has set up 15
project training centres, 2 simulator training centres and an apex institute namely 'Power Management
Institute' (PMI). While the project training centres (Employee Development Centres) have specialized in
imparting technical skills and knowledge, PMI places emphasis on management development.

In order to realize the HR Vision of making NTPC a learning Organization by providing opportunities
to continually learn new capabilities a number of initiatives have been taken. NTPC Open Competition
for Executive Talent (NOCET) is organized every year in which teams of executives compete annually
through oral and written presentation on a topical theme. Similarly "Professional Circles" have been
formed department-wise where Executives of the department meet every fortnight to share their
knowledge and experiences and discuss topical issues. In order to tap the latent talent among non
executives and make use of their potential for creativity and innovation, Quality Circles have been set
up in various units/offices in NTPC.

Besides a management journal called "Horizon" is published quarterly to

enable employees to share their ideas and experiences across the
organization. Demonstrating its high concern for people, NTPC has developed strong employee welfare,
health & well-being and social security systems leading to high level of commitment. NTPC offers best

quality-of-life through beautiful townships with all amenities such as educational, medical and
recreational opportunities for employees and their family members. The motivation to perform and
excel is further enhanced through a comprehensive NTPC Rewards and Recognition system.

In order to institutionalize a strong Culture based on Values a number of initiatives are taken to
actualize the Vision and Core Values (BCOMIT) across the company. A culture of celebrating
achievements and a strong focus on performance are a way of life in NTPC. NTPC has institutionalized
“Development Centers" in the company to systematically diagnose the current and potential

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competency requirements of the employees with the objective of enhancing their development in a
planned manner. These Centers give a good insight to the employees about their strengths and
weaknesses, the gaps in their competencies which they can bridge through suitable support from
company. Due to innovative people management practices there is a high level of pride and
commitment amongst employees as reflected in the various external surveys including Great Places to
Work for in India in which NTPC was rated third Great Place to work for in the country in 2005.
In alignment of NTPC’s Vision and Mission, the HR vision is also defined to the following HR
Objectives and HR Goals.

HR VISION
OBJECTIVES
“To EnableDevelopment
Employee Our People to Be a Family of Committed
Career Planning
World Class Professionals, Making NTPC a learning
Developing Employee Commitment and pride
organization”
Employee Relations
Quality of Work Life

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 HR GOALS
Actualize the HR Vision
Enhance organizational performance and commitment of employees
Build a competency based organization
Institutionalize core values create culture of team building.

To realize its HR vision and HR goals, there are well defined strategies which ultimately aim at
achieving the corporate objective and vision. These strategies are futuristic in nature and with main
emphasis laid on building competency as well as commitment. The following measures are being
adopted:
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 HR STRATEGIES
Competency Building Measures:
Revised Performance Management System.
Leadership Development.
Integrated Career Planning, Development and Succession Planning.
Training and Development.
E-Learning and Global Exposure.
Commitment Building Measures:
Enabling Organizational Climate.
Rewards and Recognition.
Culture Building and System Building Measures.
Core Value Actualization.
Communication and Knowledge Management System.
Benchmarking.

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THE SUCCESS STORY OF GLORIOUS YEARS

197
 Electricity Supply Act, 1948 amend & NTPC Incorporated on 7th Nov.
5
197  NTPC acquired the first patch of land at Singrauli in September.
7  The first batch of executive trainees joined the company.
197
 Govt. of India approved the implementation of Farakka project in March.
9
198
 Former Soviet Union offers to assist in setting up of power stations.
0
 Farakka Super Thermal Power Project in West Bengal was the fourth among the first
198
series of four super thermal power projects taken up by NTPC. On 29th December late
1
Smt. Indira Gandhi, the then Prime Minister laid the foundation stone for the project.

198  Power Management Institute, Delhi, a center of education established.

2  On 12th November late Smt. Indira Gandhi, the then Prime Minister laid the foundation
stone for Vindhyachal Super Thermal Power Project in Madhya Pradesh.

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198  In the very first year of commercial operation, NTPC earned a profit of ` 4.51 Crore in
3 the financial year 1982-83.
198  Synchronization of its first 500MW unit at Singrauli.
6  Became one of the first PSUs to issue bonds in the debt market.
198  The first gas (88MW) of first gas based combined cycle power plant at Anta, Rajasthan
9 Commissioned.
199
 The total installed capacity crossed 10000 MW
0

199  For the first time, IBRD extended the direct loan of USD 400 Million under time slice

3 concept for its projects.

199  Crossed 15000 MW of installed capacity.

4  Declared a dividend of ` 65 crore for the first time.
199  NTPC celebrated 20 years of its existence. Various programs were organized to mark its

5 twentieth anniversary.
 A new logo was adopted.
199  Identified by GoI as one of the Navratna public sector undertakings.
7  Achieved 100 billion units generation in one year.
200  Commenced construction of a first hydro-electric project of 800MW capacity in
0 Himachal Pradesh.
200  Three wholly owned subsidiaries of NTPC viz. NTPC Electric Supply Company Ltd,
2 NTPC Hydro Ltd and NTPC Vidyut Vyapar Nigam Ltd Incorporated.

200  NTPC became a listed company.

4  NTPC made its debut issue of euro bonds amounting to USD 200 million in the
international market.
 NTPC received the International Project Management Award, 2005 for its Simhadri

200 project.

5  NTPC was ranked as the Third ‘Great Place to work for in India’ for the second time in
succession by a survey conducted by Grow Talent and Business World 2005.
 The companies name changed to NTPC Ltd.
 For the fourth consecutive year, NTPC continued to realize 100% of current bills.
200  Agreement signed with government of Haryana and Delhi for setting up 1500 MW plant
6 in Jhujjar.

 Ministry of coal, GOI granted in-principle approval of a new coal block, namely, Chhati
Baristu South to NTPV, subject to the conditions stipulated in the approval letter. The
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 share of reserve was indicated as 354 million tones.
200  Vindhyachal Super Thermal Power Project became the largest power station in the
7 country with an installed capacity of 3260 MW

 NTPC allocation 0.5% of distributable profits annually for its R & D fund for sustainable
energy for development of green & clean technologies.
 Strategic foray into manufacturing by forming Joint Venture Companies with BHEL and
Bharat Forge.
200  Joint Venture Company under the name “National Power Exchange Ltd” was
8 incorporated on 11th December 2008 with NHPC Ltd. , PFC Ltd. , to operate power
exchange at national level.
 NTPC was ranked Number 1 in the ‘Best Work place for Large Organizations’ and
number 8 overall for the year 2008 by Great place to work Institute’s. India chapter in
collaboration with the Economic Times
 500 MW Unit VI of Sipat brought under commercial generation.
200  NTPC Has achieved the highest ever single day generation of 655.22 MUs on 2nd
9 March, 209 with highest ever single day coal based generation of 579.02 MUs.

 Government of India, Deptt. Of Public Enterprises, Ministry of Heavy Industries &

Public Enterprises vides Office Memorandum dated 19th May, 2010 has conveyed grant
of Maharatna status to NTPC apart from three other Central Public Sector Enterprises
(CPSEs). Since, presently NTPC has requisite number of non-official Directors on its
Board, therefore, only NTPC is eligible to exercise delegated Maharatna powers.
201  NTPC bagged two awards at the Asia Best Employer Brand Ceremony held at Singapore
0 recently for Best HR Strategy in line with Business and Award for Talent Management.
 NTPC Limited has been ranked 7th overall in ‘India’s Best Companies to Work for
2010’, a study by The Great Places to Work Institute India and The Economic Times.
The Company is also ranked 1st among large organizations’ with over 10,000 employees,
1st in the Public Sector Enterprises segment and 1st in the Manufacturing and Production
Industry segment.

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RETENTION POLICIES AT NTPC

Career Advancement & Opportunities

We have a well established talent management system in place, to ensure that we deliver on our promise
of meaningful growth and relevant challenges for our employees. Our talent management system
comprises PERFORMANCE MANAGEMENT, CAREER PATHS and LEADERSHIP
DEVELOPMENT.

Sound Communication & Employee participation

SAP ERP implementation titled project ‘Lakshya’, the pilot implementation of the project at
Ramagundam, Faridabad, Koldam, NCR HQ and Corporate were completed in a span of 10 months.
The SAP solution is expected to help NTPC achieve faster exchange of information, improved
productivity and reduction of costs, better data consistency, knowledge sharing and unification of
planning and budgeting process. A management journal called "Horizon" is published quarterly to
enable employees to share their ideas and experiences across the organization.

Rewards & Recognitions

We have, from inception, created a culture of rewards and recognitions through celebration of various
achievements and events and recognizing the contributions behind such success.

Knowledge Management in NTPC

To meet our ultimate objective of becoming a learning organization, an integrated Knowledge

Management System has been developed, which facilitates tacit knowledge in the form of learning and
experiences of employees to be captured and summarized for future reference.

Innovate, Create, Compete

We have introduced numerous initiatives which seek to enhance the creativity, innovation, functional
aptitude and teamwork of our employees. These initiatives include National Open Competition for
Executive Talent (NOCET), Professional Circles, Quality Circles, Business Minds and Medha
Pratiyogita (a quiz for our employees). A management journal called “Horizon” is published quarterly
to enable the employees to share their ideas and experiences across the organization.

Quality of Work-Life

NTPC is proud of its systems for providing a good quality of work-life for its employees. In addition to
providing beautiful and safe work places, NTPC encourages a culture of mutual respect and trust
amongst peers, superiors and subordinates. Away from hectic city life, NTPC townships provide an
environment of serenity, natural beauty and close community living. Numerous welfare and recreation

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facilities including schools, hospitals and clubs are provided at the townships to enhance quality of life
& the well being of employees and their families. An entire range of benefits, from child care leave to
post retirement medical benefits are extended to employees to meet any exigency that may arise in a
person's life.

Training & Development

NTPC subscribes to the belief that efficiency, effectiveness and success of the organization, depends
largely on the skills, abilities and commitment of the employees who constitute the most important asset
of the organization.

Our Training Policy envisages a minimum of 7 man days of training per employee per year. We have
developed our own comprehensive training infrastructure.

Education Up-gradation Schemes

To meet the academic aspirations of employees and match them with the needs of the organization,
NTPC has tie-ups with institutes of repute like MDI, Gurgaon; IIT Delhi; BITS Pilani, etc. NTPC
sponsors fixed size batches of employees who are inducted into these courses based on their
performance rating in the company and their performance in the entrance exam conducted by the
respective institute. Unlike other study leave and sabbaticals, employees undergoing these courses do
not forego their salary or growth during the duration of the course.

Employee’s Relations

The new recruits are being molded in the culture and environment of the organization with the help of a
systematic and formal ‘Mentoring System’ of the company to integrate them into the culture of the
company.

Seeking Feedback

We actively seek and encourage employee feedback to ensure that our HR interventions and practices
remain relevant and meaningful. We regularly conduct Employee Satisfaction and Organizational
Climate Surveys.

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 LITERATURE REVIEW

1. Research on “Work life Balance, Employee Engagement, Emotional

Consonance/Dissonance & turnover Intention”

Tara Shankar and Jyotsna Bhatnagar, Management Development Institute, Gurgaon (2010) identifies
that

– Higher Work Life Balance leads to higher Employee Engagement mediated by emotional
consonance

- High WLB will lead to High Employee Engagement, and low intention to quit. con·so·nance
n.
1. Agreement; harmony; accord.

2.
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a. Close correspondence of sounds.

b. The repetition of consonants or of a consonant pattern, especially at the ends of words, as in blank
..... Click the link for more information.

– Higher the emotional consonance, higher is the Work Life Balance mediated by Employee
Engagement.

2. Research on “Employee Engagement: Role of Self-efficacy, Organizational

Support & Supervisor Support”

Surya Prakash Pati and Pankaj Kumar, Indian Institute of Management-Lucknow (2010) identifies that

– An empowered employee can be expected to be engaged.

3. Research on “The impact of the Health Insurance Portability and Accountability

Act on Participant Recruitment and Retention”

Deidre D. Wipke-Tevis and Melissa A. Pickett, University of Missouri-Columbia (2007) identifies that

– Despite of increase in costs due to HIPAA implication the recruitment and retention of
participants improved as the participants were self-motivated due to the benefits.

4. Research on “Effect of Paced and Unpaced Practice on Skill Application and

Retention: How Much Is Enough?”

Provalis Research, University of Montréal (2003) identifies that

– Practicing until mastery improved individual exam scores, group success rates, and long-term
retention.

– Over learning provided additional benefits, especially in long-term retention.

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 – Fluency-building instructions did not further increase academic achievement or long-term
retention.

– A positive relationship was found between amount of practice and attitudes toward the course,
the subject matter, and practice activities.

5. Research on “Employee Retention-Talent Management”

Mythri Isukapally Jr., Alliance Business Academy (2006) identified that

The foremost step necessary for effective implementation of retention strategies is to understand the
scope of the retention problem that is unique to one's organization.

Working strategies for effective retention are-

– Form Employee retention committee to motivate & inculcate sprit of belongingness.
– Reward the employees who have longevity in your organization.
– Succession planning.
– Make the employees aware of their career tree.
– Celebration of the performance.
– Turning exit interviews to Recruiting interviews.
– Family orientation

Page | 26
 CONCEPTUAL FRAMEWORK

RETENTION:

“High performers are like frogs in a wheelbarrow-

They can jump out at any time”

-Mc Kinsey & Company Study.

“Genius begins and labor finishes” is an old saying that would be profoundly significant if interpreted in
the context of corporate and large employers. Concepts, visions and decisions do take shape within the
four walls of corporate boardrooms. However, it is only the employees that implement and give
tangibility to the corporate’s mission. In other words if it is the highest rung in the corporate hierarchy
that has ideas, it is the employees’ rung that has the chisel to bring the vision to life.

In the best of worlds, employees would love their jobs. Like their co-workers, work hard for their
employers; get paid well for their work, ample chances of advancement and flexible schedules so they
could attend to personal or family needs when necessary. And never leave.

But then there’s the real world. And in the real world, employees, do, leave, either because they
want more money, hate the working conditions, hate their co-workers, want a change, or because their
spouse gets a dream job in another state. Unlike inanimate products and systems that subject themselves
to fine tuning without any reaction, employees would not subject themselves to any measure taken
without reaction and analysis. Hence managing human resources, particularly retaining them, is an art
that calls for special skills and strategies.

Page | 27
EMPLOYEE RETENTION

Employee Retention involves taking measures to encourage employees to remain in the organization for
the maximum period of time. Corporate is facing a lot of problems in employee retention these days.
Hiring knowledgeable people for the job is essential for an employer. But retention is even more
important than hiring. There is no dearth of opportunities for a talented person. There are many
organizations which are looking for such employees. If a person is not satisfied by the job he’s doing,
he may switch over to some other more suitable job. In today’s environment it becomes very important
for organizations to retain their employees.

The top organizations are on the top because they value their employees and they know how to keep
them glued to the organization. Employees stay and leave organizations for some reasons.

Employee retention is a process in which the employees are encouraged to remain with the
organization for the maximum period of time or until the completion of the project. Employee
retention is beneficial for the organization as well as the employee.

Employee retention is a business management term referring to efforts by employers to retain current
employees in their workforce. The purpose is to avoid employee turnover and associated costs: hiring
and training expenses; productivity loss; lost customers; diminished business; and damaged morale
among remaining members of the workforce. Retention is particularly a problem in high stress
occupations such as teaching, nursing and social care work.

JOB SATISFACTION:

Job satisfaction describes how content an individual is with his or her job. The happier people are within
their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation, although
it is clearly linked. Job design aims to enhance job satisfaction and performance; methods include job
rotation, job enlargement and job enrichment. Other influences on satisfaction include the management
style and culture, employee involvement, empowerment and autonomous work groups. Job satisfaction
is a very important attribute which is frequently measured by organizations. The most common way of
measurement is the use of rating scales where employees report their reactions to their jobs. Questions
relate to rate of pay, work responsibilities, variety of tasks, promotional opportunities the work itself
and co-workers.

Page | 28
RETENTION POLICIES:

RETENTION POLICY OF ANY ORGANISATION is derived from the market conditions in which the
company works. In other words the former is highly very closely related to the latter. However retention
policy by itself should take into consideration the policies of other organizations regarding talent hunt
and retention of talent pool, etc.

Retention policy should commit itself to the organization personnel policy like enriching the
organizations Human resource. The policy must incorporate motivating the potential employee,
improving the employee loyalty to the organization by absorbing the laid-off or casual /temporary
employee or dependent of present or former employee etc. subject to their capabilities.

WHAT MAKES EMPLOYEE LEAVES?

Employees do not leave an organization without any significant reason. There are certain circumstances
that lead to their leaving the organization. The most common reasons can be:

Job is not what the employee expected to be: Sometimes the job responsibilities don’t come out to be
same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction.

1. Job and person mismatch: A candidate may be fit to do a certain type of job which matches
his personality. If he is given a job which mismatches his personality, then he won’t be able to
perform it well and will try to find out reasons to leave the job.
2. No growth opportunities: No or less learning and growth opportunities in the current job will
make candidate’s job and career stagnant.
3. Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-
motivated and loses interest in job.
4. Lack of trust and support in co-workers, seniors and management: Trust is the most
important factor that is required for an individual to stay in the job. Non-supportive co-workers,
seniors and management can make office environment unfriendly and difficult to work in.
5. Stress from overwork and work life imbalance: Job stress can lead to work life imbalance
which ultimately many times lead to employee leaving the organization.
6. Compensation: Better compensation packages being offered by other companies may attract
employees towards themselves.
7. New job offer: An attractive job offer which an employee thinks is good for him with respect to
job responsibility, compensation, growth and learning etc. can lead an employee to leave the
organization.
Page | 29
RETENTION MYTHS

The process of retention is not as easy as it seems. There are so many tactics and strategies used in
retention of employees by the organizations. The basic purpose of these strategies should be to increase
employee satisfaction, boost employee morale hence achieve retention. But sometimes these strategies
are not used properly or even worse, wrong strategies are used. Because of which these strategies fail to
achieve the desired results. There are many myths related to the employee retention process. These
myths exist because the strategies being used are either wrong or are being used from a long time. These
myths prevent the employer from successfully implementing the retention strategies. Let us have a look
on some of these myths:

1. Employees leave an organization for more pay: Money may be the motivating factor
for some but for many people it is not the most important factor. Money matters more to the
low-income-employees for whom it’s a survival issue. Money can make an employee stay in an
organization but not for long. The factors more important than money are job satisfaction, job
responsibilities, and individual’s skill development. The employers should understand this and
work out some other ways to make employees feel satisfied. When employees leave,
management tries to retain them by offering more money. But instead they should try to figure
out the main reason behind it. Issues that are mainly the cause of dissatisfaction are
organization’s policies and procedures, working conditions, relationship with the supervisor and
salary, etc. For such employees, achievement, growth, respect, recognition, is the main concern.
2. Incentives can increase productivity: Incentives can surely increase productivity but not
for long term. Cash incentives, volume work targets and speed awards are old management
beliefs. They can generate work speedily and in volumes but can’t boost employee commitment.
Rather speed can hamper the quality of work produced. What really glues employees to their
work and organization is quality work, meaningful responsibilities, recognition, respect, growth
opportunities and friendly supervisors.
3. Employees run away from responsibilities: It is a myth that employees run from
responsibilities. In-fact employees feel more responsible if they are given extra responsibilities
apart from their regular job. Employees look for variety, greater control on the processes and
authority to take decisions in their present job. They want opportunities to learn and grow.
Management can assign extra responsibilities to their employees and appreciate them on the
completion of these tasks. This will induce a sense of pride in the employee and will improve
the relationship between the management and the employee.

Page | 30
4. Loyalty is a thing of the past: Employees can be loyal but what they need is an employer
for whom they can be loyal. There is no reason for the employee to hop jobs if he’s satisfied
with the employer.
5. Taking measures to increase employee satisfaction will be expensive for the
organizations: The things actually required improving employee satisfaction like respect,
career growth and development, appreciation, etc. can’t be bought. They are free of cost. An
employer or management that reacts well to the employee’s ideas and suggestions is enough for
the employees to be retained

ANALYSES AND FINDINGS

Page | 31
1. What is the Average Stay per employee in your organization?

Chart-1

The above graph shows that 50% of the public sector employees have an average stay of more than
10years, 33% of the employees have an average stay of 8-10 years, 17 % have an average stay of 5-8
years and no responses lies in the range of 0-3 years and 3-5 years.

Chart-2

The above graph shows that 71% of the private sector employees have an average stay of 3-5 years,
29% of the employees have an average stay of 5-8 years and no responses lies in the range of 0-3 years,
8-10 years and more than 10 years.

2. As Per Your Organization How Important Talent Retention is?

Very low extent Low extent Moderate extent High extent Very high extent

1 2 3 4 5

Chart-3 Chart-4

The above graphs shows that importance of talent retention is of very high extent in 33 % of the public
sector companies in comparison of 29% of the private sector companies, high extent in 67 % of the
public sector companies in comparison of 43% of the private sector companies, moderate extent in 14%
of the private sector companies where as no response from public sector companies in this range, low
extent in 14% of the private sector companies in comparison of no response from public sector
companies and no response by companies from both the sectors in very low extent range.

3. Does the organization have strategies for talent retention?

Very low extent Low extent Moderate extent High extent Very high extent

Page | 32
 1 2 3 4 5

Chart-5 Chart-6

We can observe that the strategies for talent retention is of high extent in 33 % of the public sector
companies in comparison of 29% of the private sector companies, moderate extent in 50 % of the
public sector companies in comparison of 28% of the private sector companies, low extent in 17 % of
the public sector companies in comparison of 29 % of the private sector companies and no response by
companies from both the sectors in Very high extent and very low extent range.

4. Does your organization keeps these strategies up to date?

Yes No

1 2

Chart-7

The above graphs shows that 50 % of the public sector companies keep the retention strategies up to
date in comparison of 42.85 % private sector companies, and 50 % of the public sector companies do
not keep the retention strategies up to date in comparison of 57.14 % private sector companies.

Page | 33
6. How effective are the following practices for employee retention rate on five point
rating scale?

Very low extent Low extent Moderate extent High extent Very high extent

1 2 3 4 5

Social Practices

Chart-8

The graph shows that the highly effective (Mean Score ≥3) practices for talent retention for private
sector and public sector are -

Social Practices (Public Sector) Mean Score

Giving gifts to employee on occasions like, birthdays, anniversaries, marriage, etc. 4.17

Celebrate birthdays, anniversaries, retirement and promotions of employees. 4

Get-togethers for employees & family members on occasions like Diwali, Holi, New
4
Year, etc.

Arrangements for indoor games at the premises. 4.67

Organizing get together for watching football, hockey and cricket matches. 3.17

Organizing annual sports meets for employees. 3.5

Personalized well done and thank-you cards from supervisors. 4.17

Voicemails or messages from top management. 3
Social Practices (Private Sector)
Giving gifts to employee on occasions like, birthdays, anniversaries, marriage, etc. 3.29
Celebrate birthdays, anniversaries, retirement and promotions of employees. 3.29
Arrangements for indoor games at the premises. 3.29
Organizing get together for watching football, hockey and cricket matches. 3.57
Organizing annual sports meets for employees. 3.85
Personalized well done and thank-you cards from supervisors. 3.57

Page | 34
Financial Practices

Very low extent Low extent Moderate extent High extent Very high extent

1 2 3 4 5

Chart-9

Here the response shows that the highly effective practices (Mean Score ≥3) related to financial
practices for public sector and private sector companies are:-

Financial Practices (Public Sector) Mean Score

Competitive pay packages. 4.33

Assistance with tax calculations and submission of forms. 3.33

Financial planning assistance. 3.5

Providing insurance plans like: - health insurance, travel insurance, etc. 4.17
Scholarships for employee’s children. 3.83
Loans and Advances for Employees. 4.33

Financial Practices (Private Sector) Mean Score

Competitive pay packages. 4.42

Providing insurance plans like: - health insurance, travel insurance, etc. 3.71

Loans and Advances for Employees. 4.71

Non-Monetary Incentive Practices.

Very low extent Low extent Moderate extent High extent Very high extent

1 2 3 4 5

Chart-10

We can see here that the highly effective Non-Monetary practices for public sector and private sector
companies are as follows-

Non Monetary Incentive Practices (Public Sector) Mean Score

Non-monetary incentives fixed by the management on regular time intervals. 3.67

Page | 35
Incentives as per the employees interest or need, like a tour package to an adventure
3.33
loving guy.

Non Monetary Incentive Practices (Private Sector) Mean Score

Non-monetary incentives fixed by the management on regular time intervals. 3.86

Transparent Work Culture and Communication Practices.

Very low extent Low extent Moderate extent High extent Very high extent

1 2 3 4 5

Chart-11

From the responses we can see the highly effective Transparent Work Culture and Communication
Practices as per public sector and private sector companies are as follows:-

Mean
Transparent Work Culture and Communication Practices (Public Sector) Score
Unbiased policies for awards, rewards, promotions & appraisals. 4.83

Sharing the policies, future plans, upcoming projects & achievements with the employees. 3.5
Continuous encouragement for coming up with new ideas by immediate boss. 3.83
An open door culture to encourage sharing of thoughts, ideas, grievances, etc. 3.5
Encourage frequent formal and informal discussions among the teams. 3.67
Use of Emails, Newsletters, Intranet to boost the effective communication among the
3.5
employees.
Mean
Transparent Work Culture and Communication Practices (Private Sector) Score
Unbiased policies for awards, rewards, promotions & appraisals. 4.00

Sharing the policies, future plans, upcoming projects & achievements with the employees. 3.71

Continuous encouragement for coming up with new ideas by immediate boss. 3.57

An open door culture to encourage sharing of thoughts, ideas, grievances, etc. 3.43

Encourage frequent formal and informal discussions among the teams. 3.57

Frequent meetings and Social gatherings. 3.14

Page | 36
Use of Emails, Newsletters, Intranet to boost the effective communication among the
3.43
employees.

Quality Work Environment and Work Life Balance Practices.

Very low extent Low extent Moderate extent High extent Very high extent

1 2 3 4 5

Chart-12

It can be observed from the graph that the Quality Work Environment and Work Life Balance Practices
rated highly effective by the public sector and private sector companies are as follows -

Quality Work Environment and Work Life Balance Practices (Public Sector) Mean Score
Addressing their work life issues i.e. the physical work environment, social environment. 3.33

Suitable and flexible working hours. 3.17

Medical benefits, and other benefits like pick & drop cab, work place cafeteria, etc. 4.33
Job enrichment and clear information about jobs need to be performed. 3.83
Continuous career oriented training for personal/professional development. 3.83
Extended paternal/maternal leave in case of single father/mother. 4.00

Quality Work Environment and Work Life Balance Practices (Private Sector) Mean Score
Addressing their work life issues i.e. the physical work environment, social environment. 3.43

Page | 37
Suitable and flexible working hours. 3.14

Medical benefits, and other benefits like pick & drop cab, work place cafeteria, etc. 3.86

Job enrichment and clear information about jobs need to be performed. 4

Continuous career oriented training for personal/professional development. 3.43

Empowerment Practices.

Very low extent Low extent Moderate extent High extent Very high extent

1 2 3 4 5

Chart-13

Page | 38
The highly effective Empowerment Practices rated by public sector and private sector companies are -

Empowerment Practices (Public Sector) Mean Score

Encouraging The Managers to share the authority and accountability with the junior
3.5
employees.
Promoting a Suggestion system among the employees and evaluating & implementing
3.33
the suggestions.
Encourage employees to feel free to provide feedbacks and share their views. 4
Providing mentors to the new employees to make them understand the organizations
4.33
culture in a better way.

Empowerment Practices (Private Sector) Mean Score

Encouraging The Managers to share the authority and accountability with the junior
3.57
employees.
Promoting a Suggestion system among the employees and evaluating & implementing
3.71
the suggestions.
Encourage employees to feel free to provide feedbacks and share their views. 4
Providing mentors to the new employees to make them understand the organizations
3
culture in a better way.

KEY FINDINGS
Page | 39
 THE SUCCESSFUL COMPLETION OF THE STUDY PROJECTS FOLLOWING FINDINGS:-

1. At NTPC the HR department practices following policies for retention management : -

a. Career Advancement & Opportunities
b. Sound Communication & Employee participation
c. Rewards & Recognitions
d. Knowledge Management in NTPC
e. Innovate, Create, Compete
f. Quality of Work-Life
g. Training & Development
h. Education Up-gradation Schemes
i. Employee’s Relations
j. Seeking Feedback

2. The average stay of majority of employees in a single company comes out to be –

Sectors Years Percentage of Employees

Public Sector Companies More than 10 years 50%
Private Sector Companies 3-5 years 71%
It is up to 24 years in case of NTPC. This explains the ultra-low 0.9% attrition and the highly efficient
0.82 man-to-megawatt ratio.

3. In comparison of 67 % of public sector companies only 43 % of private sector companies stated Talent
Retention to be of higher importance for their organization.

4. 50 % public sector companies keep their retention policies changing as per the need where as only
42.85 % private sector companies bring changes in their policies.

5. Social Practices rated highly effective for talent retention by both the public sector as well as private
sector companies are –

Practices Mean Score Mean

Public Score
Page | 40
 Sector Private
companies Sector
companies
Giving gifts to employee on occasions like, birthdays, anniversaries,
4.17 3.29
marriage, etc.
Celebrate birthdays, anniversaries, retirement and promotions of
4 3.29
employees.
Arrangements for indoor games at the premises. 4 3.29
Organizing get together for watching football, hockey and cricket
4.67 3.57
matches.
Organizing annual sports meets for employees. 3.17 3.85
Personalized well done and thank-you cards from supervisors. 3.5 3.57

6. Financial Practices rated highly effective for talent retention by both the public sector as well as
private sector companies are –

Practices Mean Mean Score

Score Private
Public Sector
Sector companies
companies
Competitive pay packages. 4.33 4.42
Providing insurance plans like: - health insurance, travel insurance, etc. 4.17 3.71
Loans and Advances for Employees. 4.33 4.71

7. Non-Monetary Incentive Practices rated highly effective for talent retention by both the public sector
as well as private sector companies are –

Practices Mean Mean Score

Score Private
Public Sector
Sector companies
companies
Non-monetary incentives fixed by the management on regular time 3.67 3.86
Page | 41
 intervals.

8. Transparent Work Culture and Communication Practices rated highly effective for talent retention by
both the public sector as well as private sector companies are –

Practices Mean Score Mean

Public Score
Sector Private
companies Sector
companies
Unbiased policies for awards, rewards, promotions & appraisals. 4.83 4.00
Sharing the policies, future plans, upcoming projects & achievements
3.5 3.71
with the employees.
Continuous encouragement for coming up with new ideas by immediate
3.83 3.57
boss.
An open door culture to encourage sharing of thoughts, ideas,
3.5 3.43
grievances, etc.
Encourage frequent formal and informal discussions among the teams. 3.67 3.57
Use of Emails, Newsletters, Intranet to boost the effective
3.5 3.43
communication among the employees.

9. Quality Work Environment and Work Life Balance Practices rated highly effective for talent retention
by both the public sector as well as private sector companies are –

Practices Mean Score Mean

Public Score
Sector Private
companies Sector
companies
Addressing their work life issues i.e. the physical work environment,
3.33 3.43
social environment.
Suitable and flexible working hours. 3.17 3.14
Medical benefits, and other benefits like pick & drop cab, work place 4.33 3.86
Page | 42
 cafeteria, etc.
Job enrichment and clear information about jobs need to be performed. 3.83 4
Continuous career oriented training for personal/professional
3.83 3.43
development.

10. Empowerment Practices rated highly effective for talent retention by both the public sector as well as
private sector companies are –

Practices Mean Score Mean

Public Score
Sector Private
companies Sector
companies
Encouraging The Managers to share the authority and accountability
3.5 3.57
with the junior employees.
Promoting a Suggestion system among the employees and evaluating &
3.33 3.71
implementing the suggestions.
Encourage employees to feel free to provide feedbacks and share their
4 4
views.
Providing mentors to the new employees to make them understand the
4.33 3
organizations culture in a better way.

11. By the responses of public sector and private sector companies stated above we observe that many
practices are equally effective for talent retention companies of both the sectors.

6.1 CONCLUSION

In the dynamic business world, competition is inevitable. Climbing to the top is relatively easy than
staying at top. Many organizations have grown at a very fast speed but simultaneously they have failed
to sustain their growth. Sustenance of growth requires proportionate development. Such world-class
organizations are those who remain ahead of competitors and have managed to maintain sustainable
competitive growth.

NTPC Ltd is one of those world-class organizations, which have maintained its excellence over the
years by continuously working towards growth and development. Such an ambitious goal requires an
excellent planning and perfect implementation of the strategies. For this it becomes extremely necessary
to retain the Talent by engaging the employees with the organization so that the organization can fulfill
its goal of sustenance of growth.

Page | 43
The organization has been recruiting hundreds of graduates and post graduates every year who are
providing there worth in the company. But what happens after the recruitment process? The
organization spend its resources to train the recruits and to make them best fit for what job they are
performing or going to perform, but eventually due to lack of encouragement for engagement with the
organization the company losses its valuable assets the employees. There is a need of policies to retain
those hired and trained people. The credibility of the process can be estimated form this that NTPC not
only recruit and train executives to fulfill the requirements of its plants/ stations but it also practice such
policies which makes a strong bond between the employee and the employer. Such policies are termed
as retention policies which encourage employee engagement and helps in fulfillment of ultimate goal of
sustainable competitive growth.

After being in business for such a long time, it has gained expertise in both recruiting and retaining its
technical and non-technical employees of the organization.

After a thorough study of ‘benchmarking best practices of retention and engagement’, I learned that the
role of recruitment and retention of employees are of equal importance as they are an asset to the
company. NTPC, as a constantly learning organization, has realized the need to streamline its retention
policies with the social, psychological and economical factors in order to achieve its goals.

The Recruitment and Retention policies in NTPC ltd. are one of the major tasks of the Corporate HRD.
While undertaking this project and working upon the recruitment process with the ET Recruitment Cell
of HRD, I made some interesting observations. The following observations establish the recruitment
and retention policies at NTPC ltd. as one the best practices in the corporate world:

• The processes and policies practiced at NTPC ltd. are very much based on idealistic process for
recruitment and retention.

• There are well defined requirements and expectations from the candidates and employees. The
policies and policies are also well defined. The whole process is much more transparent and fair as
it clearly states the company’s people oriented approach.
• Selection process for candidates is given due importance so as to screen the quality candidates
keeping in mind the company’s corporate objectives, goals, vision, mission, and values. The quality
candidates make the retention practices more important.

• The whole process of recruitment is so designed to check the candidates of his/her technical
knowledge, the general aptitude, the attitude and the physical well being. Thus only best suited
candidates get selected.

Page | 44
SUGGESTIONS

• It would be a great job for the HR department if they regularly take feedback of its employees
on the retention policies to keep the policies updated as the change is inevitable and the needs of
employees changes with time, so a timely up gradation of policies keep the organization ahead
of all.

• NTPC should showcase the recruitment department at community outreach fairs and special
events.

• To make the department more visible both inside and outside the organization they should go for
go speaking at conferences/seminars and universities.

• “The Right Employee at the Right Place at the Right Time” is the key mantra for the success of
the goals of the organization. So efficient recruitment is very important.

• Quantify the organization’s promotion rates, publicly thanking those who have excelled and
been promoted via publicizing in local news papers and publicizing internal contests and
competitions.

• It would be very beneficial for the organization to make the prospective future employees aware
of its people oriented policies at the time of advertising for recruitments as it will develop a
brand image of the organization and will attract the best candidates for the vacancies.

• The employees should be encouraged to tell their own stories about how NTPC’s people
oriented policies have affected their lives.

• There should be “Exit Interviews” to keep a check on where did the company lacked in its
retention policies and required steps should be taken.

Page | 45
6.4 LIMITATIONS

In every research there are certain limitations, and this research is not an exception, so in whole process
of research the situation in which the research conducted can affect the research to a small extent. The
research conducted come across certain restrictions and limitations, so some of these limitations can be
overlooked for the successful conduction of research. Some of the limitations that can be over looked
are:-

A. The findings of the study are subjected to bias and prejudice of the respondents.

B. Area of the study is confined to the employees in Delhi NCR only.

C. Due to time constraint the questionnaire could not be administered to most of the competent
companies and so the representative sample was only 5%.

D. The findings of the study are solely based on the information provided by the respondents.

E. Many of the respondents did not wish to respond to a few questions and because of that total
score went down and could not get an accurate analysis.

F. For benchmarking, it was really difficult to get information from different companies people
were not ready to shell out information about their companies

Page | 46
 G. Since the retention factor varies from industry to industry and company to company the
outcomes were really not in any one direction.

H. Findings of the research may change due to area, demography, age condition of economy etc.

Questionnaire
Name : ______________________________
Designation : ______________________________
Organization : ______________________________

Q1. Rank the following statements from 1 to 9 in order of your preference for talent retention.

Page | 47
1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things done.

3. Make employees realize that they are the most valuable asset of the organization.

4. Have faith in them, trust and respect them.

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where the employees want to work and have fun.

Q2. What is the average stay per employee in your organization?

0-3 years 3-5 years 5-8 years 8-10 years more than 10 years.

Q3. As per your organization how important the Talent Retention is?

Very Important Important Least Important Not Important

Q4. Does your organization have strategies for talent retention?

Very low extent Low extent Moderate High extent Very high extent

Q5. Does the organization keep these strategies up to date?

Yes No

Q6. How effective are the following measures for employee retention, rate them on the scale of 1 to 5,
(5 for most effective & 1 for least effective) as per your organization.

A. SOCIAL

Page | 48
a. Giving gifts to employee on occasions like, birthdays, anniversaries, marriage, etc.
b. Celebrate birthdays, anniversaries, retirement and promotions of employees.
c. Get-togethers for employees & family members on occasions like Diwali, Holi,
New Year, etc.
d. Arrangements for indoor games at the premises.
e. Organizing get together for watching football, hockey and cricket matches.
f. Organizing annual sports meets for employees.

g. Ice cream Fridays.

h. Child care and elder care services.
i. Outing on weekend with the immediate boss once a month.
j. Personalized well done and thank-you cards from supervisors.
k. Voicemails or messages from top management.

A. FINANCIAL
a. Competitive pay packages.
b. Assistance with tax calculations and submission of forms.
c. Financial planning assistance.
d. Providing insurance plans like: - health insurance, travel insurance, etc.
e. Scholarships for employee’s children.
f. Loans and Advances for Employees.

A. NON-MONETARY INCENTIVE.

a. Non-Monetary incentives fixed by the management on regular time intervals.

b. Incentives as per the employees interest or need, like a tour package to an

adventure loving guy.
c. Varying amount of incentive as per the level in organization irrespective of their
achievement.
d. Incentives to all the employees irrespective of any achievement or not.

B. TRANSPARENT WORK CULTURE AND COMMUNICATION.

Page | 49
a. Unbiased policies for awards, rewards, promotions & appraisals.
b. Sharing the policies, future plans, upcoming projects & achievements with the
employees.
c. Continuous encouragement for coming up with new ideas by immediate boss.
d. An open door culture to encourage sharing of thoughts, ideas, grievances, etc.
e. Encourage frequent formal and informal discussions among the teams.
f. Frequent meetings and Social gatherings.
g. Use of Emails, Newsletters, Intranet to boost the effective communication
among the employees.

A. QUALITY WORK ENVIRONMENT AND WORK LIFE BALANCE.

a. Addressing their work life issues i.e. the physical work environment,
social environment.

b. Suitable and flexible working hours.

c. Self planning of leaves in the calendar by employees.

d. Medical benefits, and other benefits like pick & drop cab, work place
cafeteria, etc.

e. Autonomous work groups.

f. Job enrichment and clear information about jobs need to be performed.

Page | 50
g. Continuous career oriented training for personal/professional development.

h. Only job oriented training to make employees most suitable for the particular job.

Page | 51
i. Extended paternal/maternal leave in case of single father/mother.

j. Day care facility for the employee’s kids at the work place.

Page | 52
k. Provision for female employees to bring their baby of less than 1 yr along at
the work place.

Page | 53
A. EMPOWERMENT

a. Encouraging The Managers to share the authority and accountability with the
junior employees

Page | 54
b. Promoting a Suggestion system among the employees and evaluating &
implementing the suggestions.
c. Encourage employees to feel free to provide feedbacks and share their views.

Page | 55
d. Providing mentors to the new employees to make them understand the
organizations culture in a better way.

Page | 56
Q7. Being an employee what would you suggest as the mantra for employee engagement other then
what has already been mentioned?

a.________________________________

Page | 57
b.________________________________
c.________________________________

Page | 58
BIBLIOGRAPHY

Books

• Venkata Ratnam, C.S. and Srivastava, B.K. Personnel Management & Human Resource. Tata
Mcgraw-Hill publishing company Ltd, 2005.

• Burack, Elmer H and Smith, Robert D. Personnel Management: a Human Resource system
Approach. John Wiley & Sons Inc

• Pattanayak, Bniswajeet. Human Resource Management. Prentice-Hall of India Pvt. Ltd, 2005.

• Rao, V.S.P. Human Resource Management.

WEBLINKS

✔ http://www.publishingindia.com/Research/Article-Listing.aspx?
IssueID=88&IssueYear=2010&IssueName=Issue%201&ProductName=Indian%20Journal
%20of%20Industrial%20Relations&VolumeName=Volume%2046&ProductID=22
“Paper on Work Life Balance, Employee Engagement, Emotional Consonance/Dissonance &
Turnover Intention by Tara Shankar & Jyotsna Bhatnagar”
&
“Paper on Employee Engagement: Role of Self-efficacy, Organizational Support &
Supervisor Support by Surya Prakash Pati & Pankaj Kumar”
✔ http://wjn.sagepub.com/content/30/1/39.abstract

“Paper on Impact of the Health Insurance Portability and Accountability Act on Participant
Recruitment and Retention”

✔ http://aer.sagepub.com/content/40/3/769.abstract

“Paper on Effect of Paced and Unpaced Practice on Skill Application and Retention: How
Much Is Enough?”

✔ http://www.citehr.com/32436-article-retention.html#axzz16LSAmarZ, Oct 12, 2010.

✔ http://www.citehr.com/62371-retention-strategies.html#axzz16LSYS038, Oct 15, 2010

✔ www.ntpc.co.in

Page | 59
1. Ranking of Practices for the purpose of Talent Retention form 1 to 9.

Practices N
T
N
H F
ID
BI
S
B
D
M
P P C Ba B R
C C I nk J C
Hire the right people in the first place. 1 1 2 1 1 3
Empower the employees 6H 9F 9D 9R T9 2
Practices I
Employees the most valuable asset of the organization
n 5C 4r 3e 8S a5
N
I7
d L
9 7
i 5
n A
7
j7 I6
Have faith in them, trust and respect them. i g a G3 T8
Provide them information and knowledge. 3 3 4 5
a o v r
Keep providing them feedback on their performance.B 8 8r 7e 4 o7 9
u 2 2
i 1
L 3
u2 5
Recognize and appreciate their achievements. ll f t p
Keep their morale high. s 7 5i 8d 6 o8 4
Create an environment where the employees want to 4 6c 6. 2 f4 1
work and have fun. o H
A o
ll t
a e
n l
a s
L
t
d
Hire the right people in the first place. 2 1 1 2 1 1 1
Empower the employees 3 6 9 7 6 8 9
Employees the most valuable asset of the
8 5 2 6 7 2 5
organization.
Have faith in them, trust and respect them. 6 8 7 4 4 6 3
Provide them information and knowledge. 7 4 3 3 2 4 8
Keep providing them feedback on their 5 9 5 5 9 9 4
performance.
Recognize and appreciate their achievements. 4 2 6 1 5 5 6
Keep their morale high. 9 7 8 9 8 7 7
Create an environment where the employees 1 3 4 8 3 3 2
want to work and have fun.
Page | 60
2. What is the Average Stay per employee in your organization?

Average Stay NT N FC ID SB D
PC HP I BI BJ M
C Ba RC
nk

0-3 Years
3-5 Years
5-8 Years √
8-10 years √ √
More Than 10 Years √ √ √

Average Stay In H Fr D R T N
di C ig en S aj II
a L or av A G T
B ifi e ro
ul co Lt u
ls Al d. p
la of
na H
ot
el
s

0-3 Years
3-5 Years √ √ √ √ √
5-8 Years √ √
8-10 years
More Than 10 Years

Page | 61
3. As Per Your Organization How Important Talent Retention is?

Very low extent Low extent Moderate extent High extent Very high extent
1 2 3 4 5

Sl. No. Name of the company Five Point Ratings

1 NTPC 4
2 NHPC 5
3 FCI 4
4 IDBI BANK 5
5 SBBJ 4
6 DMRC 4

1 India Bulls 2
2 HCL 3
3 Frigorifico Allana 4
4 Denave Ind Ltd. 4
5 RSA 5
6 Taj Group of Hotels 4
7 NIIT 5

4. Does your organization have strategies for talent retention?

Very low extent Low extent Moderate extent High extent Very high extent
1 2 3 4 5

Sl. No. Name of the company Five Point Ratings

1 NTPC 4
2 NHPC 3
3 FCI 3
4 IDBI BANK 3
5 SBBJ 4
6 DMRC 2

1 India Bulls 2
2 HCL 2
3 Frigorifico Allana 2
4 Denave Ind Ltd. 3
5 RSA 4
Page | 62
6 Taj Group of Hotels 4
7 NIIT 3

5. Does your organization keeps these strategies up to date?

Yes No
1 2

Sl. No. Name of the company Five Point Ratings

1 NTPC 1
2 NHPC 2
3 FCI 2
4 IDBI BANK 2
5 SBBJ 1
6 DMRC 1

1 India Bulls 2
2 HCL 2
3 Frigorifico Allana 2
4 Denave Ind Ltd. 2
5 RSA 1
6 Taj Group of Hotels 1
7 NIIT 1

Page | 63
6. How effective are the following practices for employee retention rate on five point
rating scale?

Very low extent Low extent Moderate extent High extent Very high extent
1 2 3 4 5
In Case of Social Practices

Social Practices N
T
N
H
F
C
I
D
S
B
D
M
P P I B B R
C C I J C

B
a
n
k

Giving gifts to employee on occasions like, birthdays, 5 3 2 5 5 5

anniversaries, marriage, etc.
Celebrate birthdays, anniversaries, retirement and promotions of 4 3 3 3 3 4
employees.
Get-togethers for employees & family members on occasions like 5 5 2 3 5 4
Diwali, Holi, New Year, etc.
Arrangements for indoor games at the premises. 5 5 4 5 5 4
Organizing get together for watching football, hockey and cricket 4 2 3 4 3 3
matches.
Organizing annual sports meets for employees. 4 5 3 3 3 3
Ice cream Fridays. 3 1 1 3 1 3
Child care and elder care services. 4 2 1 2 2 1
Outing on weekend with the immediate boss once a month. 3 1 1 4 4 4
Personalized well done and thank-you cards from supervisors. 5 4 3 5 5 3
Voicemails or messages from top management. 4 3 3 3 3 2

Page | 64
 I H F D R T N
Social Practices n C ri e S aj II
di L g n A G T
a o a r
B ri v o
ul fi e u
ls c L p
o td of
A . H
ll ot
a el
n s
a
Giving gifts to employee on occasions like, 2 3 4 4 4 3 3
birthdays, anniversaries, marriage, etc.
Celebrate birthdays, anniversaries, retirement 3 4 3 3 4 4 2
and promotions of employees.
Get-togethers for employees & family members 2 2 4 2 4 2 4
on occasions like Diwali, Holi, New Year, etc.
Arrangements for indoor games at the premises. 3 3 3 4 3 3 4
Organizing get together for watching football, 5 3 3 4 3 4 3
hockey and cricket matches.
Organizing annual sports meets for employees. 4 4 3 4 3 5 4
Ice cream Fridays. 1 3 1 1 3 4 2
Child care and elder care services. 2 1 2 1 3 2 3
Outing on weekend with the immediate boss 2 2 2 1 2 2 4
once a month.
Personalized well done and thank-you cards 4 5 3 4 4 3 2
from supervisors.
Voicemails or messages from top management.
3 4 2 3 2 2 4

Page | 65
In Case of Financial Practices.

Very low extent Low extent Moderate extent High extent Very high extent
1 2 3 4 5

Financial Practices N
T
N
H
F
C
I
D
S
B
D
M
P P I B B R
C C I J C

B
a
n
k

Competitive pay packages. 4 3 4 5 5 5

Assistance with tax calculations and submission of forms. 4 2 3 4 4 3
Financial planning assistance. 4 2 2 5 5 3
Providing insurance plans like: - health insurance, travel 3 4 4 5 5 4
insurance, etc.
Scholarships for employee’s children. 4 4 2 5 4 4
Loans and Advances for Employees. 4 5 3 5 5 4

Financial Practices I
n
H
C
F
r
D
e
R
S
T
a
N
I
d L i n A j I
i g a G T
a o v r
r e o
B i u
u f L p
l i t
l c d o
s o . f
H
A o
l t
l e
a l
n s
a
Competitive pay packages. 4 4 4 5 4 5 5

Page | 66
Assistance with tax calculations and submission of forms. 2 3 5 2 2 2 4
Financial planning assistance. 1 2 3 2 4 3 3
Providing insurance plans like: - health insurance, travel 3 3 5 3 4 4 4
insurance, etc.
Scholarships for employee’s children. 2 1 1 1 1 2 1
Loans and Advances for Employees. 5 4 5 5 4 5 5

In Case of Non-Monetary Incentive Practices.

Very low extent Low extent Moderate extent High extent Very high extent
1 2 3 4 5

N N F I S D
Non-Monetary Incentive Practices T H C D B M
P P I B B R
C C I J C
B
a
n
k

Non-Monetary incentives fixed by the management on 4 3 3 4 4 4

regular time intervals.
Incentives as per the employees interest or need, like a 4 2 1 4 4 5
tour package to an adventure loving guy.
Varying amount of incentive as per the level in 4 3 3 2 3 3
organization irrespective of their achievement.
Incentives to all the employees irrespective of any 2 3 3 1 3 3
achievement or not.

Page | 67
In Case of Transparent Work Culture and Communication Practices.

Very low extent Low extent Moderate extent High extent Very high extent
1 2 3 N4 N F I 5S D
Transparent Work Culture and T H C D B M
Communication Practices P P I B B R
C C I J C
B
a
n
k

Unbiased policies for awards, rewards, promotions & 5 3 3 5 5 5

appraisals.
Sharing the policies, future plans, upcoming projects & 4 3 4 3 3 4
Non-Monetary
achievements Incentive
with the employees.
I
n
H
C
F
r
D
e
R
S
T
a
N
I
5 3 3 5 3
Continuous encouragement for coming up with new ideas
Practices d by L i n A j I 4
immediate boss. i g a G T
An open door culture to encourage sharing of thoughts, ideas,
a 5 o 2 v 3 5 r 3 3
grievances, etc. B r e o
Encourage frequent formal and informal discussions amongu 4 if 3 L 4 4 u 4 3
the teams. ll i t p
Frequent meetings and Social gatherings. s 3 c 3 d 2 2 o 2 2
o . f
Use of Emails, Newsletters, Intranet to boost the effective 4 A 3 2 4 H4 4
communication among the employees. ll o
a t
n e
a l
s
Non-Monetary incentives fixed by the management 4 3 5 4 4 4 3
on regular time intervals.
Incentives as per the employees interest or need, like 3 2 4 2 3 2 3
a tour package to an adventure loving guy.
Varying amount of incentive as per the level in 2 4 3 2 2 4 3
organization irrespective of their achievement.
Incentives to all the employees irrespective of any 1 2 1 1 2 1 1
achievement or not.
Page | 68
 In H F D R T N
Transparent Work Culture and di C ri e S a I
Communication Practices a L g n A j I
B or a G T
ul ifi v r
ls co e o
A L u
ll t p
a d o
n . f
a H
o
t
e
ls
Unbiased policies for awards, rewards, promotions 4 5 3 5 5 4 2
& appraisals.
Sharing the policies, future plans, upcoming 4 3 4 5 4 3 3
projects & achievements with the employees.
Continuous encouragement for coming up with 3 4 3 5 4 3 3
new ideas by immediate boss.
An open door culture to encourage sharing of 3 4 3 4 4 2 4
thoughts, ideas, grievances, etc.
Encourage frequent formal and informal 4 4 3 3 4 4 3
discussions among the teams.
Frequent meetings and Social gatherings. 5 3 2 2 4 4 2
Use of Emails, Newsletters, Intranet to boost the 4 5 2 2 4 2 5
effective communication among the employees.

In Case of Quality Work Environment and Work Life Balance Practices.

Very low extent Low extent Moderate extent High extent Very high extent
1 2 3 4 5

Quality Work Environment and NT

PC
N
HP
F
CI
ID
BI
S
B
D
M
Work Life Balance Practices C B B R
an J C
k

Addressing their work life issues i.e. the physical 4 2 2 4 4 4

work environment, social environment.
Page | 69
Suitable and flexible working hours. 3 1 3 4 3 5
Self planning of leaves in the calendar by 3 1 2 4 3 4
employees.
Medical benefits, and other benefits like pick & 5 4 2 5 5 5
drop cab, work place cafeteria, etc.
Autonomous work groups 4 2 2 2 2 3
Job enrichment and clear information about jobs 4 3 3 5 4 4
need to be performed.
Continuous career oriented training for 4 4 2 5 4 4
personal/professional development.
Only job oriented training to make employees most 3 5 2 3 2 2
suitable for the particular job.
Extended paternal/maternal leave in case of single 4 5 3 4 4 4
father/mother.
Day care facility for the employee’s kids at the 2 1 1 5 1 2
work place.
Provision for female employees to bring their baby 2 1 1 1 1 2
of less than 1 yr along at the work place.

I H F D R T N
Quality Work Environment and n C ri e S a I
Work Life Balance Practices di L g n A j I
a o a G T
B ri v r
ul fi e o
ls c L u
o t p
A d o
ll . f
a H
n o
a t
el
s
Addressing their work life issues i.e. the physical 4 3 3 5 3 3 3
work environment, social environment.
Suitable and flexible working hours. 4 4 3 2 2 3 4

Page | 70
Self planning of leaves in the calendar by 3 5 1 2 3 3 3
employees.
Medical benefits, and other benefits like pick & 5 4 1 4 4 4 5
drop cab, work place cafeteria, etc.
Autonomous work groups 2 4 1 1 4 3 2
Job enrichment and clear information about jobs 4 4 3 5 4 5 3
need to be performed.
Continuous career oriented training for 5 4 2 4 3 4 2
personal/professional development.
Only job oriented training to make employees most 2 3 3 2 3 3 4
suitable for the particular job.
Extended paternal/maternal leave in case of single 1 2 2 2 3 2 4
father/mother.
Day care facility for the employee’s kids at the 1 1 1 1 1 2 2
work place.
Provision for female employees to bring their baby 2 1 1 1 1 1 1
of less than 1 yr along at the work place.

In Case of Empowerment Practices.

Very low extent Low extent Moderate extent High extent Very high extent
1 2 3 4 5

Page | 71
 NT NH F I S D
Empowerment Practices PC PC C D B M
I B B R
I J C
B
a
n
k

Encouraging The Managers to share the authority 4 2 3 4 4 4

and accountability with the junior employees.
Promoting a Suggestion system among the
employees and evaluating & implementing the 4 2 2 4 4 4
suggestions.
Encourage employees to feel free to provide 4 3 4 5 4 4
feedbacks and share their views.
Providing mentors to the new employees to make
them understand the organizations culture in a 5 4 3 4 5 5
better way.

Ind H F D R T N
Empowerment Practices ia C r e S a I
Bul L i n A j I
ls g a G T
o v r
r e o
i L u
f t p
i d
c . o
o f
H
A o
l t
l e
a l
n s
a
Encouraging The Managers to share the authority and 2 3 4 5 3 4 4
accountability with the junior employees.
Promoting a Suggestion system among the employees 3 3 3 5 3 5 4
and evaluating & implementing the suggestions.
Encourage employees to feel free to provide 4 4 3 5 4 5 3
feedbacks and share their views.
Providing mentors to the new employees to make
them understand the organizations culture in a better 2 5 2 1 4 2 5
way.

Page | 72
Page | 73