AMITY BUSINESS SCHOOL

Dessertation report

on

“To evaluate the impact of training on staff retention rates.”

By
Swati Pahuja
AUUP Enrollment No: A0101909414
MBA (G) Class of 2011

Under The Guidance

Of
Mr. Hargovind Kakkar
Lecturer
ABS

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

1
 Declaration

I, Swati Pahuja, student of Masters of Business Administration from Amity Business School,
Amity University Uttar Pradesh hereby declare that I have completed Dessertation on “To
evaluate the impact of training on staff retention rates.” as part of the course requirement.

I further declare that the information presented in this project is true and original to the best of
my knowledge.

Date: 11/03/2011 SWATI PAHUJA

Enroll. No: A0101909414

Place: Noida MBA Class of 2011

2
 CERTIFICATE

I Harbovind Kakkar hereby certify that Swati Pahuja student of Masters of Business
Administration at Amity Business School, Amity University Uttar Pradesh has completed
dissertation on “To evaluate the impact of training on staff retention rates”, under
my guidance.

Harbovind Kakkar

Lecturer
Department of Human Resource

3
 ACKNOWLEDGEMENT

With the grace and blessings of Almighty God I have sailed through this journey. At this
juncture, it gives me immense pleasure to acknowledge all the people who have guided and
helped me to complete this assignment.

The Dissertation report offered a great learning experience. During the tenure of this project, I
was fortunate to have interacted with people, who in their own capacities have encouraged and
guided me.

I would like to express my sincere gratitude to Amity Business School for providing me an
opportunity to undergo this project. Working and learning with the market leaders was a great
learning experience.

I am very thankful to my Faculty Guide Mr. Harbovind Kakkar for supporting and guiding me
throughout my project. I am deeply indebted to him for him extensive illuminating guidance,
creative suggestions, persistant encouragement, constant supervision and constructive criticism
which enabled me to give this project its final shape.

SWATI PAHUJA

A0101909414

MBA(g) 2009-11

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 Table of contents

1. Introduction 6

2. Objective and Rationale 10

3. Literature Review 12

4. Research Scope and Methodology 23

5. Data Analysis and Interpretation 27

6. Conclusions and Suggestions 38

7. Bibliography 44

8. Annexure I - Questionnaire 46

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 CHAPTER 1
INTRODUCTION

6
 Chapter 1

Introduction

“ This is a global success story made possible by the quality and determination of over 100,
000 people worldwide.”

(Vodafone 2002)

“….we believe that competitive advantage is achieved through our people…”

(Kellogg 2002)

Employees are important to the smooth functioning and competitive advantage of organizations
and yet business function dedicated to the management of people has never been a glamorous
one.

Badly affected by this manpower crunch, DLF, one of the biggest real estate developers in India
is, in fact, has decided to bring back around 20,000 Indian laborers from the Middle East to work
in its projects. This follows the Reliance Industries move of hiring nearly 40,000 Chinese
workers to lay its gas pipeline. DLF has started hiring skilled laborers such as carpenters, bar-
benders from China, Indonesia and Philippines as Chinese labor comes at a low cost and is more
productive.

“Your contribution has been valuable and has determined our success. We believe you have the
potential to take this organization to the next level and spearhead our assignments.” Such words
are often uttered by desperate bosses trying to retain their deserving employees. Sadly such
recognition and acknowledgement is provided only when the person gets an offer from another
company. But, if the timely rewards, recognition and growth would have been offered to the
employee, he would not choose to leave. Unfortunately we do not live in a perfect world and
doing the right thing at the right time does not seem very obvious to most people.

• Training and development: Employees should be trained and given chance to improve
and enhance their skills. Many employers fear that if the employees are well rained,
they’ll leave the organization for better jobs. Organization should not limit the resources

7
 on which organization’s success depends. These trainings can be given to improve many
skills like:

• Communications skills,

• Technical skills

• In-house processes and procedures improvement related skills

• Customer satisfaction related skills

• Special project related skills

Researchers have shown much interest in evaluating the effectiveness of various training
programs for organizational development. In a rapidly changing technological age, training
programs are critical for keeping up with ever evolving systems and processes. As a result, adult
work-based education and advanced learning is at an all time high, according to the American
Society for Training and Development’s (ASTD’s) 2007 State of the Industry Report. ASTD
estimates that U.S. organizations spend more than $121 billion on employee training and
development.
Importance of Relationship in Employee Retention Program

Sometimes the relationship with the management and the peers becomes the reason for an
employee to leave the organization. The management is sometimes not able to provide an
employee a supportive work culture and environment in terms of personal or professional
relationships. There are times when an employee starts feeling bitterness towards the
management or peers. This bitterness could be due to many reasons. This decreases employee’s
interest and he becomes demotivated. It leads to less satisfaction and eventually attrition.To
enhance good professional relationships at work, the management should keep the following
points in mind.

Respect for the individual: Respect for the individual is the must in the organization.

Relationship with the immediate manager: A manger plays the role of a mentor and a coach.
He designs ands plans work for each employee. It is his duty to involve the employee in the

8
processes of the organization. So an organization should hire managers who can make and
maintain good relations with their subordinates.

Relationship with colleagues: Promote team work, not only among teams but indifferent
departments as well. This will induce competition as well as improve the Relationship among
colleagues.

9
 CHAPTER 2
OBJECTIVES
AND
RATIONALE

10
 Chapter -2

Objectives and Rationale

Objectives:

• To study the impact of employee training on employee retention .

• To find out various factors which lead to employee leaving the organization.

Rationale :

The research is sought to discover any significance existed between the employee training and its
retention. The research will give insight on to what extent training is important to employees and
how its helps organization to retain their valuable employees. The fundamental aim of training is
to help the organization achieve its purpose by adding value to its key resource – the people it
employs. Training means investing in the people to enable them to perform better and to
empower them to make the best use of their natural abilities. The particular objectives of
training are to Develop the competences of employees and improve their performance, help
people to grow within the organization in order that, as far as possible, reduce the learning time
for employees starting in new jobs on appointment, transfers or promotion, and ensure that they
become fully competent as quickly and economically as possible and find ways to retain them.

11
 CHAPTER 3
LITERATURE
REVIEW

12
 Chapter 3

Literature Review

One key factor in employee motivation and retention is the opportunity employees want to
continue to grow and develop job and career enhancing skills. In fact, this opportunity to
continue to grow and develop through training and development is one of the most important
factors in employee motivation.

So what is Employee Training and Development??

Training involves an expert working with learners to transfer to them certain areas of knowledge
or skills to improve in their current jobs. Development is a broad, ongoing multi-faceted set of
activities (training activities among them) to bring someone or an organization up to another
threshold of performance, often to perform some job or new role in the future.

Training is the systematic development of the attitude, knowledge, skill pattern required by a
person to perform a given task or job adequately and development is 'the growth of the individual
in terms of ability, understanding and awareness'.

Landy (1985) defined job training as “a set of planned activities on the part of an organization to
increase the job knowledge and skills or to modify the attitudes and social behavior of its
members in ways consistent with the goals of the organization and the requirements of the job”.
Training is systematic development of the knowledge, skills, and expertise required by a person
to effectively perform a given task or job (Patrick, 2000).

3.1 Training

Training has been defined as any management practice that can be controlled or managed to elicit
a desired set of unwritten, reciprocal attitudes and behaviors, such as organizational commitment
(Sparrow, 1998). Despite the tremendous availability of various training programs, there remains
concern regarding the contribution of training to specific desired outcomes such as commitment.
Commitment has been related to the actual and perceived human resource management practices
13
such as training (Gaertner & Nolen, 1989). Perhaps training should be specifically designed to
achieve increased organizational commitment (Lang 1992).

Individual perceptions about training appear to play an important role in affecting organizational
commitment. Encouragement from managers and/or directly from trainers influences an
employee’s sense of attachment to the organization, and feelings of moral obligation to stay. In
one study, support for training (via encouragement from superiors) predicted as much as 52% of
the variance of affective commitment (Ahmad & Bakar, 2003). In the same study, the actual
benefit of the training (content specificity) accounted for only 19% of the variance of affective
commitment. While these staggering results have not been replicated, they suggest that the
secondary benefits of training interventions (perceived organizational support, commitment and
organizational citizenship behaviors) can be achieved independently from the specific content of
the training intervention.

Encouragement and support for training can be a critical factor in influencing commitment and
turnover. Variance for overall commitment (comprised of normative, affective, and continuous
commitment) is predicted more by support for training (43%) than any other single factor, and
most other factors combined (Ahmad & Bakar, 2003). Frequency of training opportunities is also
a factor. Employees exposed to more training opportunities are likely to exhibit higher levels of
affective commitment (Meyer & Allen, 1991).

Reasons for training

Reason Description

Promotion opportunity Training was associated with promotion or

New processes introduced
Regular training program
job advancement opportunity
New methods or processes were introduced
– additional training required to continue
same job
The training was part of a regular program
to maintain and upgrade employee skills
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 Necessary when starting job The training was necessary when I began a
job
Necessary for certificate The training was necessary for a license or a
certificate

The authors used meta-analytic procedures to examine the relationship between specified
training design and evaluation features and the effectiveness of training in organizations. In
addition, the training method used, the skill or task characteristic trained, and the choice of
evaluation criteria were related to the effectiveness of training programs.

Corporate Training Increase In Employee Retention And Productivity Sathiya Seelan, In addition
to preventing illnesses amongst employees, corporate wellness Corporate Training programs also
lead to a reduction in employee absenteeism. Employees who are stressed, unhealthy or
overworked tend to become sick much more often than healthy employees. When programs that
focus on the benefits of corporate wellness are implemented, this rate can be drastically reduced.
There is a compelling need driving the market for soft skills training like Managerial Training,
Team Leadership, Outbound Training, Executive Training and Corporate Training. Also, it is
suggested that the organizations should adopt these wellness training programs and don't wait
until most of your employees are stressed, sick or applying to other jobs.

Thomas Acton, Willie Golden in the paper details the results of a survey administered to 200
employees across 39 software companies in Ireland between July and August 2001, with a
response rate of 102 (51%). It presents a descriptive study, which assesses the impact that
training practices have on employee retention. It also gathers data on the effects of training
initiatives, the types of training in use, and the influence of training on knowledge retention. The
predominant method of training delivery is by instructorled formal sessions, followed by self-
training and workshops. Findings show that more modern methods such as web-based and
computer-based training are not pervasive.

This research is conducted by University of Tasmania on Training can be a recruitment and

retention tool for emergency service volunteers to what extent training can prove to be a
15
powerful tool to retain employees. Poorly delivered or constantly re-scheduled training is a
disincentive. All emergency services aiming to recruit and retain volunteers should investigate
the flexibility, quality and timeliness of the training they deliver to ensure it reinforces the
motivations of their workforce. Barriers to provision of such training need to be identified and
removed.

New Developments in Employee Training are to accommodate the rapid technological changes,
employees must master increasingly complex technical skills. Five major forces behind training
becoming so important and central to any firm's operations are as follows: global and domestic
competition; changes in technology; mergers, acquisitions and divestitures causing realignment
of structures and functions of companies; better educated workforce.

What impact does training has on employee effectiveness and employee traing? By Scott Brum
talks about how training can help the organizations to build high level of commitment and
reducing the turnover rate. Also, that only training is not important but also the employee
participation and its reaction towards the training are important factors. If employees are not
interested in training then the training is of no use and merely will be cost to the company.

The research is conducted by Lorinda lohtka in order to train the employees so that they can
become future leaders. The study identified the various reasons for absenteeism and less
motivation among the employees. The model was built so as to plan the development of future
leaders in the organization.

Training scenario in Indian industry talks about the world-wide expansion of companies and
changing technologies, Indian Organizations have realized the importance of corporate training.
Training is considered as more of retention tool than a cost.

Today, human resource is now a source of competitive advantage for all organizations.
Therefore, the training system in Indian Industry has been changed to create a smarter workforce
and yield the best results. With increase in competition, every company wants to optimize the
utilization of its resources to yield the maximum possible results. Training is required in every
field be it Sales, Marketing, Human Resource, Relationship building, Logistics, Production,
Engineering, etc. It is now a business effective tool and is linked with the business outcome

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3.2 Job Satisfaction

On the job performance may be influenced by many factors; one commonly studied is job
satisfaction. While there is no single definitive definition of job satisfaction, it is typically
considered an affective or emotional reaction to one’s job, or as an attitude one holds about their
job (Weiss, Nicholas, & Daus, 1999). Job satisfaction is considered a predictor of job
performance (Judge, Thoresen, Bono, & Patton, 2001). Therefore, as organizations seek to
increase job performance, they may seek interventions that increase job satisfaction. Efforts to
enhance job satisfaction may focus solely on the individual employee’s personality and
demographics in relation to job satisfaction. This is known as the dispositional approach
(Necowitz & Roznowski, 1994). More commonly, attempts to enhance job satisfaction focus on
the work environment, as organizations have more control over this.

Job satisfaction is considered to be both cognitive and affective (Weiss, Nicholas & Daus, 1999).
However, measures of job satisfaction tend to focus primarily on the cognitive aspect (Organ &
Near, 1985). Limited inquiry on the affective aspect has separated positive and negative
affectivity into two distinct personality constructs. This research indicated a correlation between
a positive affectivity disposition and increased job satisfaction, as well as between a negative
affectivity disposition and decreased job satisfaction (Necowitz, & Roznowski, 1994).

For a comprehensive study of the relationship between job satisfaction and job performance,
Judge, Thoreson, Bono, and Patton (2001) conducted a meta-analysis of 312 studies on the
subject and confirmed the positive correlation between job satisfaction and job performance.
They also found that this correlation was more significant for high complexity jobs, with more
Task Variety, and less significant for low complexity jobs. This suggests that Task Variety or an
associated demographic (such as hierarchical level within the organization) mediates the
relationship between job satisfaction and job performance.

The study adopted by Edens ,Pamela(2003) has the cross-sectional survey research design,
investigating the extent to which selected motivational variables influence employees’ decision
17
to either remain or quit an organization. Quantitative research design was used and this design
was chosen because its findings are generaliseable and the data objective. The study examined
two public and two private sector organisations in South Africa. The total population of the
research comprised 1800 employees of the surveyed organisations with a sample size of 145
respondents. A self-developed questionnaire, measured on a Likert Scale was used to collect data
from respondents.

The book by Barb Wingfield, Janice Berry is a 50 minute series which discusses about 3R’s
which are Recognition, rewards and results. According to author if the organization is able to
deliver these 3 R’s then you can make your organization as a graet place to work..

The Relationship Between Satisfaction with Workplace Training and Overall Job Satisfaction
study done by Steven W. Schmidt examined the relationship between satisfaction with employer-
provided workplace training and overall job satisfaction of customer contact representatives. A
significant relationship was found between job training satisfaction and overall job satisfaction.
Components of job training, including time spent in training, training methodologies, and
content, were determined to be significant in their relationship to job training satisfaction, and
trainees were significantly more satisfied with the training they received when the methodology
employed was their preferred one.

3.3 Turnover

Employee turnover occurs when employees leave their jobs and must be replaced. Replacing
exiting employees is costly to organisations and destructive to service delivery. It is therefore
imperative for management to reduce, to the minimum, the frequency at which employees,
particularly those that are crucial to its operations leave. Retention is a voluntary move by an
organization to create an environment which engages employees for long term (Chaminade,
2007). The main purpose of retention is to prevent the loss of competent employees from the
organisation as this could have adverse effect on productivity and service delivery. However,
retention of high performing employees has become more challenging for managers as this

18
category of employees frequently move from one job to another as they are being attracted by
more than one organisation at a time.

Hendricks (2006) notes that employees with scarce skillsare in great demand by the South
African government and becoming difficult to source. When these categories of employees are
eventually sourced, they become even more difficult for government to retain. It is not only
government that is finding it difficult retaining highly skilled employees. The private sector
managers also admit that one of the most difficult aspects of their jobs is the retention of key
employees in their organizations (Litheko, 2008). Most of the time when these employees move,
they migrate to competing organisations with the knowledge and trade secrets acquired from
their former employers thereby creating an even more critical situation for the latter (Abassi and
Hollman, 2000). Empirical studies such as Stovel and Bontis (2002) have shown that employees,
on average switch employers every six years. This situation demands that management should
identify the reason/s for this frequent change of employment by employees. Once this reason/s
has been identified, management can then device retention strategies that will help in keeping
essential employees for a rather longer tenure.

While functional turnover (that is, bad performers leave, good performers stay) can help reduce
suboptimal organisational performance (Stovel and Bontis, 2002), high turnover can be
detrimental to the organisation’s productivity. This can result in the loss of business patronage
and relationships, and can even jeopardise the realisation of organisational goals. On the other
hand, Abassi and Hollman (2000) argue that dysfunctional turnover (that is, good performers
leave, bad performers stay) damages the organisation through decreased innovation, delayed
services, improper implementation of new programmes and degenerated productivity. Such
activities can radically affect the ability of organisations to prosper in today’s competitive
economy, leaving even the most ambitious organizations unable to succeed due to their inability
to retain the right employees (Stovel and Bontis, 2002).

Abassi and Hollman, 2000; Hewitts Associates, 2006; Sherman et al. 2006) highlight reasons for
employee turnover in the organisations: hiring practices; managerial style; lack of recognition;
lack of competitive compensation system; toxic workplace environments. Others include lack of
interesting work; lack of job security; lack of promotion and inadequate training and
development opportunities, amongst others.
19
These are intrinsic and extrinsic motivational factors which can assist managers to influence
employee retention in their organisations. The problem, however, is that managers have failed in
identifying and properly using these variables as retention strategies thereby resulting in the
prevailing high turnover rate in the organisations.

Turnover is not only destructive to organisations, it is also costly. Every time an employee quits,
a replacement must be recruited, selected, trained and permitted time on the job to gain
experience. Apart from the costs that are directly associated with recruiting and training a new
employee, other indirect costs exist. Bliss (2007) and Sutherland (2004) contend that
organisations lost productivity, social capital and suffer customer defection when a productive
employee quits. Knowledge, skills and contacts that a departing employee takes out of the
organisation constitutes a huge loss. These attributes are, in most cases, lost to a competitor
organisation that may use this to gain competitive advantage. Ramlall (2003) estimates the cost
of employee turnover as 150% of an individual employee’s annual salary. This cost can be
substantial especially when high profile employees or high number of employees is involved.

3.4 Retention

Employee Retention Strategies

The basic practices which should be kept in mind in the employee retention strategies are:

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 them and respect them.

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

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8. Keep their morale high.

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

Sunil Ramlall(2004) offers an explanation of how employee motivation affects employee

retention and other behavior in the organization. The author throws light that why it is important
to retain the employees and also discusses various theories of motivation. It also explains how
effective employee retention practices be explained through motivation theories.

Michael O. Samuel and Crispen Chipunza(2009) research looked at the extent to which identified
intrinsic and extrinsic motivational variables influenced the retention and reduction of employee
turnover in both public and private sector organisations. The research was aimed at achieving the
following objectives: identify and establish the key intrinsic and extrinsic motivational variables
being used by selected public and private sector organisations in retaining their employees;
determine the extent to which the identified intrinsic and extrinsic motivational variables are
influencing employees’ retention and turnover in the selected organisations; and make
recommendations to management of the selected organisations on how to effectively retain
employees and reduce turnover.

These are intrinsic and extrinsic motivational factors which can assist managers to influence
employee retention in their organisations. The problem, however, is that managers have failed in
identifying and properly using these variables as retention strategies thereby resulting in the
prevailing high turnover rate in the organisations.

The research taken by Lilly and Johnson(2005) looked at the extent to which identified intrinsic
and extrinsic motivational variables influenced the retention and reduction of employee turnover
in both public and private sector organizations. The research was aimed at achieving the
following objectives: identify and establish the key intrinsic and extrinsic motivational variables
being used by selected public and private sector organisations in retaining their employees;
determine the extent to which the identified intrinsic and extrinsic motivational variables are
influencing employees’ retention and turnover in the selected organisations; and make

21
recommendations to management of the selected organisations on how to effectively retain
employees and reduce turnover.

Nitin Gupta in Training & Development: A Tool Of Retaining Employees has the objective of studing
the training & development is required for an organization to retain its employees, as Training is
activity leading to skilled behavior and it realize the employees that what they want in life&
knowing how to reach it, where they want to go and how to get there, how high they want to rise
and how to take off in the organization.

Employer-Sponsored Training And Job Retention Of Mid-Career Employees by Sumati Srinivas(

2008) study focuses on explaining the empirical finding that many employers often sponsor
training that employees could potentially use in other firms (i.e., general training). This paper
studies employer-sponsored general training for mid-career employees, who form an important
but neglected subset of workers in the training context. Cross training and computer training
have the most significant positive effects on employee job retention while only a regular training
program to upgrade skills appears to produce positive employee job retention effects.

CHAPTER 4
22
RESEARCH SCOPE
AND
METHODOLOGY

23
 Chapter -4

Research Scope and Methodology

Research Methodology

4.1 Research can be defined as “a scientific and systematic search for pertinent information in
any branch of knowledge’. It is the pursuit of truth with the help of study, observation,
comparison and experiment.

Research Design

4.2 A research design is a grand plan to approach to a research topic, so the design selected
for the research work plays a vital role. The project was completely experience based, with an
orientation to gain knowledge about severance pay and packages and how it is linked with the
employee satisfaction.

The two research design types used are:

(1) Exploratory research design

(2) Descriptive Research design

Data Collection

4.3 The data is the source of information collected through surveys, direct contacts etc. it can
be classified in two parts.

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4.3.1 Primary Data: The data that has been collected by the researcher himself for his own/
personal use is termed as primary data. This is the essential data as it works as a concrete
foundation for the research. A Questionnaire was evolved after considerable thought and
deliberations, and large number of persons in various employments was surveyed. Here the
Questionnaire and Survey acted as a source of primary data. For the present study, the primary
data was collected from the staff of various private companies.

4.3.2 Secondary Data: It is the data which the researcher did not collect for himself directly
from respondents or subjects. Thus it is a data collected by other researchers, perhaps for their
primary study. When this data is used by another person, body for its personal use, then this data
becomes a secondary data for others. During the course of study, the secondary data was
collected through books , magazines, and my college library as also Internet search engines and
portals, sources including Wikipedia. Such details are indicated at the end of Report under
Bibliography.

Following may also be relevant to explain here.

4.4 Research Instrument: Structured questionnaire was used for data gathering.

4.5 Sampling Design: A sample design is a definite plan for obtaining a sample from the given
population. It is determined before the data is collected. Sampling design could be non-
probability and probability sampling.

4.6 Samples Size: This includes respondents those have been selected for the purpose of the
study. A total 100 questionnaire were circulated to diverse private companies like Dabur, SRF,
New Holland.

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4.7 Sampling Technique: Convenience Sampling

4.8 Scaling Technique: The scaling technique used here are:

4.8.1 Likert Scale - A rating scale designed to measure user attitudes or reaction by quantifying
subjective information. Participants indicate where along a continuum their attitude or reaction
resides.

4.8.2 Nominal scale - A scale of measurement in which numbers don't represent value, instead
their use is to label or categorize an object or an event.

4.9 Limitations of the study - The major problem that was faced during the research were -

(i) Time constraints and limited availability of the sources of data and information for survey. I
usually had only weekends relatively free to devote on the study;

(ii) Several employees approached in various offices, particularly in Private companies, did not
respond to questionnaire citing management problems.

26
 CHAPTER 5
DATA ANALYSIS
AND
INTERPRETATION

27
 Chapter-5

Data Analysis and Interpretation

Training Satisfaction
It has been proved and reiterated in many studies conducted worldwide that training and
development programs conducted are received very positively by the employees, whether they
are newly hired or have been working with the organization for some time.. A survey was
conducted in which various factors were evaluated to find out the training satisfaction among the
employees.
The responses were analysed through on a 5-point likert scale where 1 & 2 are on the
unfavourable side and 4& 5 are on the favourable side and 3 represents a neutral response.

Comprehensiveness of training
This factor was used to analyze whether the employees are satisfied with the kind of training they
have received to perform their job well or they feel that they still need more training. Almost
91% of the employees responded that they would like to have more training for their job.

Majority of employees feel that they should receive more training to perform their job as training
after regular intervals will definitely help them in performing their job better as will it will update
their skills.

28
Quality of training

During this research it was tried to find out that whether training programs adopted by the
organization has contributed in an individual’s decision to work with the organization, it was
observed that most of the people, valued the training programs provided by the company as these
training programs are an important value addition in their career.

As can be seen in the above chart that almost all the employees considered the extensive training
program as an important factor in their decision to work with the organization.

This is because of the fact they know that this training program which includes both conceptual
as well as practical training will help them in their profession growth which was stated by the
responses of all the employees surveyed.

29
Overall satisfaction of training

Thus after taking into consideration all the factors pertaining to training satisfaction, it was
observed that most of the respondents were satisfied with the training they have received for their
particular job.

The mean value of satisfaction with the overall training program was calculated as 4.60, with
standard deviation of .682, which reflect that the respondents rated highly for the overall training
program and hence their satisfaction level with the training program was high.

Job Satisfaction v/s Turnover Intent

30
 Ho: There is no significant relationship between job satisfaction and turnover intent

H1: There is a significant relationship between job satisfaction and turnover intent

The following results were obtained when the data for the two was run for chi-square analysis
on SPSS at 95% confidence level:

I am seriously thinking about quitting my job

Strongly Slightly Slightly Strongly
Disagree Disagree Neutral Agree Agree Total
I am very satisfied with Agree 13 7 4 8 2 34
the kind of work I do on Strongly 44 15 7 0 0 66
this job Agree
Total 57 22 11 8 2 100

Chi-Square Tests
Asymp. Sig.
Value Df (2-sided)
Pearson Chi-Square 22.668a 4 .000
Likelihood Ratio 25.054 4 .000
Linear-by-Linear 17.599 1 .000
Association
N of Valid Cases 100

P(critical) = 0.05
P(observed) = 0.000

31
Since P (critical) is greater than P (observed), the null hypothesis (Ho) is rejected at 95%
confidence interval and the alternate hypothesis is accepted.

Thus, there is a significant relationship between job satisfaction and turnover intent.
There can be many reasons for an employee’s dissatisfaction with his job like the:
• He/ she thinks that he/she deserves more remuneration
• There might be discontent with the boss
• The values of the employee being different from the organization
• Not enough growth opportunities
• Unsuitable working conditions
• A better offer from another company, etc.

Thus any of the above reasons and many more could be responsible for the discontent of the
employees. An employee who is unsatisfied will work with the organization only till the time
he/she is required to by his circumstances. As soon as he/she will find a better offer from another
company, he/ she would not stay long with the organization.

Training Satisfaction v/s Turnover Intent

A cross tabulation was done to find out whether there is any relationship between training
satisfaction between job satisfaction

32
Ho: There is no significant relationship between training satisfaction and turnover intent
at 95% confidence interval.

H1: There is a significant relationship between training satisfaction and turnover intent at
95% confidence interval.

The following results were obtained when the data for the two was run for chi-square analysis on
SPSS at 95% confidence level:

Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 51.887a 12 .000
Likelihood Ratio 52.156 12 .000
Linear-by-Linear 1.418 1 .234
Association
N of Valid Cases 100

I am seriously thinking about quitting my job

Strongly Slightly Slightly Strongly
Disagree Disagree Neutral Agree Agree Total
I am satisfied Disagree 0 2 0 0 0 2
with the kind Neutral 3 2 0 0 0 5
of training Agree 5 12 0 7 0 24
provided to Strongly 47 8 11 1 2 69
me Agree
Total 57 22 11 8 2 100

33
Now,P (critical) = 0.05

P (observed) = 0.000

Since P (critical) is greater than P (observed), the null hypothesis (Ho) is rejected at 95%
confidence interval.

Hence, there is a significant relationship between training satisfaction and turnover intent.

Although the relationship between training satisfaction and turnover intent is negative, there
might be other factors as well which are responsible for a negative turnover intent like good
working environment, high compensation etc

Job Satisfaction:

There are many factors that lead to job satisfaction among the employees, the most influencial
one being the compensation to the employees. But this factor is beyond the scope of this study,
hence only the training and development as a factor of job satisfaction has been discussed in this
segment. Reference has been made to other factors as well but not in much detail.

The various parameters through which job satisfaction was evaluated in this study are:

Compensation

34
As the above chart depicts, most of the respondents agreed that currently they are receiving the
salary that they deserve for their job, but there is still some scope for improvement in this area.
49% of the respondents agreed that the salary they are receiving is up to the standard of their job,
but their responses also tell us that they are not fully content with it. Almost 10% were
dissatisfied with their salary and 41% were neutral about it.

The mean of the above data is 4.25, which shows that the responses of the employees were more
towards neutral. Compensation is the most important factor for most of the employees in
determining their satisfaction level with the job.

Overall satisfaction level with the organization:

This parameter involved all the external influences that lead to job satisfaction, like:

• Compensation
• Growth opportunities
35
 • Interpersonal relationships within the organization
• Work environment
• Culture and value systems of the organization
• Task significance, etc.

As can be see in the bar chart above, almost all the respondents agreed that they were satisfied
with the overall job experience in this organization. This parameter included all the components
of job satisfaction, some of which have been discussed above. The inference that can be drawn
from the above data is that considering all the factors, the overall experience of the employees
with their companies is good, and they enjoy working here.

Almost all the respondents told that they were satisfied with their work and they seemed satisfied
with their work. They enjoyed the work they do and even enjoyed it. Thus it can be inferred that
maximum number of the employees were satisfied with the training they have undergone. Only
4% respondents beg to differ.

36
Also it was observed during the study that most of the respondents liked coming to work daily,
which shows that they are satisfied with their work environment, which also helps in concluding
that there the job satisfaction level among the employees is high.

The mean of the above data is 4.42, which shows that the employees come happily for work and
moreover they enjoy there work place.

Turnover Intent

When enquired about the intention of the employees to leave the organization, the following
points were noted:

37
There was a mixed response from the respondents when they were asked about their intention, if
they get a better opportunity from another organization.

Mean value = 2.99

Thus as can be seen from the above graph that the responses of the respondents were neutral.

38
 CHAPTER 6
CONCLUSION
AND
SUGGESTIONS

39
 Chapter-6

Conclusion and Suggestions

6.1 Conclusion

After the analysis of the training and job satisfaction survey, the following observations were
made:
• The employees at New Holland, SRF and Dabur are a satisfied bunch.
• Most of the employees are satisfied with the training programs that are undertaken for
them to perform their job in a satisfactory way whereas employees of Dabur would like
more training..

• Employees at New Holland feel that the quality of training provided to them is good.

• Most of the employees of all the organization-New Holland, Dabur and SRF feel that the
training program which is provided will benefit them in their career as it is not only
helping them to acquire professional skills, but also developing their personality and is a
great source of self development.

• It is also observed that most of the employees in New Holland and SRF like taking part in
various activities undertaken at the time of training program.

• Most of the employees who participated in the survey would like training at regular
intervals.

• It was also observed that most of the employees of Dabur and New Holland are satisfied
with their job and the work they perform. The employees enjoy their work and like to
come to the office. This means that they are also happy with the work culture in their
organization. Also the contentment with the work can be associated with the training they
have received to do their work.
• There was a somewhat favorable response to the question of salary being provided for the
job. Thus there is a scope for improvement in this regard.

40
 • When asked about the turnover intent of the employees, it was observed that they would
like to leave their job only if they get better opportunity like a higher pay or a better job.
• There is little assurance as employees are not willing to sign a bond with the company.

Thus it can be inferred from the above study that there is a relationship between employee
training and retention. Hence training should be done as a strategic level as a tool of employee
retention.

41
6.2 Suggestions

• Suggestions should be taken by employees so as to improve the training program.

• In Dabur and SRF, the training program should be in tune with employees career and
succession planning.
• The training program should not only help the employees to improve their existing skills
but should also help them in getting promotion.
• The training program should be more participative in nature so that the employees should
enjoy while learning.
• In Dabur training should take place at regular interval of time and not only when it is
required.
• From the study it can be seen training, job satisfaction and retention are all inter related to
each other and can be seen from the following model.

42
 CHAPTER 7
BIBLIOGRAPHY

43
 Chapter-7
Bibliography

• Samual,Michael and Chipunza, Chrispe (2009).Employee retention and turnover:

Using motivational variables as a panacea. African Journal of Business
Management
• Srinivas, Sumati (2008), Employer-Sponsored Training And Job Retention Of
Mid-Career Employees. Journal of Business & Economics Research
• Sydney Anne Barcus, The impact of training and learning on three employee
retention factors: job satisfaction, commitment and turnover intent in technical
professionals ;
• Kumar P.B.S: A magic of Employee Retention
• Ramall (2004) : A review of employee motivation theories and their implications
for employee retention within organizations
• Thomas, Acton and Golden, Wiley :Training to Retain valuable IT employees.
University of Ireland
• Wingfeild,Barb and Berry,Janice, : Retaining your employees
• Edens ,Pamela S. and Bell,Suzanne T.(2003). Effectiveness of training in
organization:A Meta-Analysis of Design and Evaluation Features. Journal of
Applied Psychology

44
• http://www.informaworld.com/smpp/content~db=all~content=a713768021
• http://www.questia.com/googleScholar.qst;jsessionid=M3fhS3cwLgNyKQQFD1
T0ZbS8zQsJYQTKThg2xL0j0SHnWKxvDVh2!-239781194!1896127874?
docId=5007552247
• http://www.academicjournals.org/AJBM/PDF/pdf2009/Sep/Samuel%20and
%20Chipunza%20pdf.pdf
• http://www.questia.com/googleScholar.qst?docId=5001930033
• http://www.businessballs.com/kirkpatricklearningevaluationmodel.htm
• http://www.retentionconnection.com/view_articles_retention.php
• www.orcworldwide.com
• www.entrepreneur.com/encyclopedia/term/82184.html
• www.employeeretentionstrategies.com
• www.bpoindia.org/research/retention-strategies-call-center-industry.shtm
• www.employee-retention-guide.com
• http://www.emeraldin sight.com/journals.htm?
articleid=1502183&show=abstract&
• http://www.docstoc.com/docs/63165177/Employee-Retention-Research-Papers
• http://www.oppapers.com/essays/Training-Development-A-Tool-Of/301709
• http://www.oppapers.com/essays/Training-Managers-Improve-Employee-
Retention/132971
• http://www.articlesnatch.com/Article/Corporate-Training-Increase-In-Employee-
Retention-And-Productivity/1708593
• http://www.pdf-searcher.com/WHAT-IMPACT-DOES-TRAINING-HAVE-ON-
EMPLOYEE-COMMITMENT-AND-EMPLOYEE-....html
• http://www.pdf-searcher.com/THE-EFFECTS-OF-EMPLOYEE-
DEVELOPMENT-PROGRAMS-ON.html

45
 CHAPTER 8
ANNEXURES

46
 Chapter -8
Annexures
Questionnaire
Q. Does your organization provide any kind of training to you?
• Yes

• No

Q. If yes, what is the number of hours provided by your company for training annually?
• <30
• 30-40
• 40-50
• >50

Q. What methods of training are used in your organization?

• On-the-Job Experiences

• Audiovisual Methods

• Simulation Method

• Computer-based Training

• Case Studies

• Management Games

• Role Playing

Q. Does training imparted to you is aligned with career /succession planning?

• Yes
47
 • No

Q. Does the training helps you in getting promotion?

• Yes

• No

Training:

Strongly Slightly Slightly Strongly

Statements Disagree Disagree Neutral Agree Agree
I have received the training I need
to do a good job.

I would like more training

The extensive training program
adopted in this company is one of
the reasons I decided to work in
this company
I am satisfied with the kind of
training provided to me
This training program will be an
important value addition in my
career
I like attending the various
activities undertaken in this
training program
The training program as a whole
helped me in my overall personal
development

Training at regular intervals will

help me to perform better
48
Suggestions were regularly taken
and implemented from me about
how to improve this
training program

Job Satisfaction:

Strongly Slightly Slightly Strongly

Statements Disagree Disagree Neutral Agree Agree
I am satisfied with the kind of work I
do on this job.
I do not like to take a leave unless it is
absolutely necessary

I like coming to work daily

I feel that the efforts I put into the
work are rewarded
I receive the salary I deserve for the
job

Turnover Intent:

Strongly Slightly Slightly Strongly

Statements Disagree Disagree Neutral Agree Agree
As soon as I can find a better job,
I’ll leave.
I am thinking about quitting my
job.
I don’t mind signing a bond with
this company
The remuneration and benefits
provided in this company are
equitable to the others in the
industry
49
A similar post with a higher salary
in another organization is
preferable to me

NAME: __________________________

COMPANY’S NAME:______________________________

MOBILE NO.:________________________________

GENDER: M F

50
 AMITY BUSINESS SCHOOL
Dissertation
FORMAT FOR OUTLINE OF PROPOSED RESEARCH WORK

Name of the Student : SWATI PAHUJA

Father’s Name : MR. AMRIT PAHUJA
Programme : MBA (G) 2011
AUUP Enrollment No.: A0101909414
Contact No. : 9873508774
E-Mail id : pahuja.swati@gmail.com

1. Title of the Research: To evaluate the impact of training on staff retention

rates.
2. Introduction: Training and development refers to the imparting of specific
skills, abilities and knowledge to an employee. A formal definition of training
&development is… it is any attempt to improve current or future employee
performance by increasing an employee’s ability to perform through learning,
usually by changing the employee’s attitude or increasing his or her skills and
knowledge. The need for training & development is determined by the
employee’s performance deficiency, computed as follows: Training &
Development need = Standard performance – Actual performance. One key
factor in employee motivation and retention is the opportunity employees want
to continue to grow and develop job and career enhancing skills. In fact, this
opportunity to continue to grow and develop through training and development
is one of the most important factors in employee motivation.

The right employee training, development and education, at the right time,
provides big payoffs for the employer in increased productivity, knowledge,
loyalty, and contribution. Training refers to the process of imparting specific
51
 skills. Development refers to the learning opportunities designed to help
employees grow. Education is theoretical learning in classroom

3. Rationale: The research is sought to discover any significance existed between

the employee training and its retention. The research will give insight on to what
extent training is important to employees and how its helps organization to
retain their valuable employees. The fundamental aim of training is to help the
organization achieve its purpose by adding value to its key resource – the people
it employs. Training means investing in the people to enable them to perform
better and to empower them to make the best use of their natural abilities. The
particular objectives of training are to Develop the competences of employees
and improve their performance, help people to grow within the organization in
order that, as far as possible, reduce the learning time for employees starting in
new jobs on appointment, transfers or promotion, and ensure that they become
fully competent as quickly and economically as possible and find ways to retain
them.

4. Review of work already done on the Subject :

Employee motivation theories and their implications for employee retention

within organization

Ramlall, Sunil (2004) in this research looked at the extent to which identified
intrinsic and extrinsic motivational variables influenced the retention and
reduction of employee turnover in both public and private sector organizations.
The research was aimed at achieving the following objectives: identify and
establish the key intrinsic and extrinsic motivation

nal variables being used by selected public and private sector organisations in
retaining their employees; determine the extent to which the identified intrinsic
and extrinsic motivational variables are influencing employees’ retention and

52
turnover in the selected organisations; and make recommendations to
management of the selected organisations on how to effectively retain
employees and reduce turnover.

Effectiveness of training in organization: A Meta-Analysis of Design and

Evaluation Features.

Edens ,Pamela S. and Bell,Suzanne T.(2003) in the study adopted the cross-
sectional survey research design, investigating the extent to which selected
motivational variables influence employees’ decision to either remain or quit an
organization. Quantitative research design was used and this design was chosen
because its findings are generaliseable and the data objective. The study
examined two public and two private sector organisations in South Africa

The result showed that employees in both public and private sector
organizations were, to a very large extent, influenced to stay in their respective
organizations by a combination of intrinsic and extrinsic motivational factors.
The following motivational variables were found to have significantly
influenced employee retention in both the public and private sector
organizations: training and development, challenging/interesting work, freedom
for innovative thinking, and job security.

The authors used meta-analytic procedures to examine the relationship between

specified training design and evaluation features and the effectiveness of
training in organizations. In addition, the training method used, the skill or task
characteristic trained, and the choice of evaluation criteria were related to the
effectiveness of training programs.

Corporate Training Increase In Employee Retention And Productivity

53
 Sathiya Seelan, in addition to preventing illnesses amongst employees,
corporate wellness Corporate Training programs also lead to a reduction in
employee absenteeism. Employees who are stressed, unhealthy or overworked
tend to become sick much more often than healthy employees.

When programs that focus on the benefits of corporate wellness are

implemented, this rate can be drastically reduced.

5. Objective(s):
• To study the impact of employee training on employee retention

• To find out various factors which lead to employee leaving the

organization.

6. Major Hypothesis:

Ho: There is no significant relationship between training satisfaction and

turnover intent at 95% confidence interval.

H1: There is a significant relationship between training satisfaction and

turnover intent at 95% confidence interval.

7. Materials and Methods :

Research Design- Exploratory cum descriptive research design
Primary sources – Questionnaire method
Sample Size- 100 employees
Secondary Sources – collected through books, articles, reports, journals,
magazines, newspapers reports prepared by research scholars, universities
and internet.
Region- Delhi/ NCR
54
 Relevant statistical techniques would be used.

8. Tentative Chapters:
1. Introduction

2. Objective and Rationale of project

3. Literature Review

4. Research Scope and Methodology

5. Data Analysis and Interpretation

6. Conclusions and Suggestions

7. Bibliography

8. Annexure I - Questionnaire

9. References cited

i. Thomas, Acton and Golden, Wiley:Training to Retain valuable IT

employees. University of Ireland
ii. Samual, Michael and Chipunza, Chrispe (2009).Employee retention and
turnover: Using motivational variables as a panacea. African Journal of
Business Management
iii. Ramlall, Sunil (2004): A review of employee motivation theories and their
implications for employee retention within organization. Journal of
American Academy of Business.
iv. Wingfeild, Barb and Berry, Janice: Retaining your employees
v. Srinivas, Sumati (2008).Employer-Sponsored Training And Job Retention
Of Mid-Career Employees, Journal of Business & Economics Research

55
 vi. Edens ,Pamela S. and Bell, Suzanne T.(2003) : Effectiveness of training
in organization:A Meta-Analysis of Design and Evaluation Features.
Journal of Applied Psychology
vii. http://www.emeraldin sight.com/journals.htm?
articleid=1502183&show=abstract&
viii. http://www.docstoc.com/docs/63165177/Employee-Retention-Research-
Papers
ix. http://www.oppapers.com/essays/Training-Development-A-Tool-
Of/301709
x. http://www.oppapers.com/essays/Training-Managers-Improve-Employee-
Retention/132971
xi. http://www.articlesnatch.com/Article/Corporate-Training-Increase-In-
Employee-Retention-And-Productivity/1708593
xii. http://www.pdf-searcher.com/WHAT-IMPACT-DOES-TRAINING-
HAVE-ON-EMPLOYEE-COMMITMENT-AND-EMPLOYEE-....html
xiii. http://www.pdf-searcher.com/THE-EFFECTS-OF-EMPLOYEE-
DEVELOPMENT-PROGRAMS-ON.html

Signature of the candidate with date

Outline Approved

Name and signature of supervisor with date

Comments by reviewer

56