Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every

managers responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. People are our most valuable asset is a clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained and under utilized. Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees.

RATIONALE OF THE STUDY Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. Also of concern are the costs of employee turnover (including hiring costs, training costs, productivity loss). Replacement costs usually are 2.5 times the salary of the individual. The costs associated with turnover may include lost customers, business and damaged morale. In addition there are the hard costs of time spent in screening, verifying credentials, references, interviewing, hiring, and training the new employee just to get back to where you started. (Workforce Planning for Wisconsin State Government, 2005) INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. People are our most valuable asset is a clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained and under utilized. The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop cultural awareness, product / process / organization knowledge and experience for new staff members. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. Recruitment 2. Selection 3. Induction 4. Performance Appraisal 5. Training & Development Recruitment The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning. Selection The selection is the process of ascertaining whether or not candidates possess the requisite qualifications, training and experience required. Induction a) Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization What is employee retention? 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 dont 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 dont, they would be left with no good employees. A good employer should know how to attract and retain its employees. Most employees feel that they are worth more than they are actually paid. There is a natural disparity between what people think they should be paid and what organizations spend in compensation. When the difference becomes too great and another opportunity occurs, turnover can result. Pay is defined as the wages, salary, or compensation given to an employee in exchange for services the employee performs for the organization. Pay is more than "dollars and cents;" it also acknowledges the worth and value of the human contribution. What people are paid has been shown to have a clear, reliable impact on turnover in numerous studies. Employees comprise the most vital assets of the company. In a work place where employees are not able to use their full potential and not heard and valued, they are likely to leave because of stress and frustration. In a transparent environment while employees get a sense of achievement and belongingness from a

healthy work environment, the company is benefited with a stronger, reliable work-force harboring bright new ideas for its growth One of the greatest challenges in todays business world is to stay up to speed in a time of technological growth. Companies spend billions of dollars to stay on the cutting edge. As we hurl ahead at an increasing pace in the area of technology, we are unfortunately facing an increased shortage of highly skilled employees. Employee retention is a concern for companies in this strong job market. There are a great number of employment opportunities for talented professionals. The higher skilled the employees, the greater the demand for their services. Also, the workforce is not growing as fast as it once did. The axiom of trimming the fat and keeping the healthy part of the cow continues to be a serious challenge. The cost to replace an employee is becoming more documented and the news is not good for employers. It costs a great deal to replace an employee. For example, review this clipping entitled: WORKFORCE GROWTH SLOWS, AMA'S 13TH ANNUAL WORKFORCE SURVEY shows More Hiring, More Firing, More Companies Doing Both at Once; Corporate Restructuring and Reengineering Result in Both Job Cuts, and Additions NEW YORK, October 26, 1999. As more companies hire, fire and do both concurrently, the overall growth of the workforce is slowing, according to the findings of the American Management Association's (AMA) 13th annual survey of the U.S. workforce. The survey of 1,192 large and midsized firms shows that staffing increased by an average 5.0 percent in the twelve months ending in June 1999, compared to 7.7 percent in the prior twelve months. Of those surveyed, 77.2 percent reported creating new jobs, up from 72 percent in the previous twelve-month period, while 49.6 percent eliminated jobs, up from 40.9 percent previously. Actual downsizing, or net reductions in the workforce, rose to 24.1 percent of the surveyed companies from 21.9 previously. Many job cuts were offset by concurrent hiring: 36 percent of surveyed firms both created new jobs and cut existing jobs in the period, up substantially from 27.1 percent previously. Above is an example of the difficulty for companies to find balance in the area of the PEOPLE FACTOR. Employees are seeing and hearing a clear message If we need you, please, please stay. If we do not, here is the security guard to escort you out. The juggling act of cutting the fat and keeping the good staff is complex. Staff morale is a huge variable that will determine success of a company and how close it will come to achieving its full profit potential. Thus the company is wise to study the topic of employee retention very carefully Employee retention process Employee retention involves a simple process that encourages and uplifts individuals or teams within an organization to remain engaged with the Company in the long term. It is beneficial for both the employee and the employer. However, retaining employees depends on four major factors on which employee motivation is based:

Remuneration and Rewards Remuneration plays the biggest role in the process of motivating staff, which in turn, leads to retention. It takes a clever hand to compose a compensation package. The best packages include:

Basic Salary Incentives: Cash or non-cash, stock options, etc. Allowances: Medical, domestic, travel, etc. Bonuses: Festival Bonus, appraisals based on Companys and individuals performance, etc. Employee Assistance Programs: Legal, psychological, etc. Retirement Benefits: Provident Fund, gratuity etc.

Work Atmosphere It is not always about retaining an employee but about managing ones surroundings at work. It is about offering appropriate facilities and services to staff. A Company should serve as a second home, as most of the employees spend a maximum of their time at work here. The following features play a major role in making the employee feel connected to the corporation:

Friendly and lively culture Ethical values Reliability and dependence Most up-to-date technologies Learning environment: Provide scholarships for higher education Personal and Professional Balance: Flexible hours Challenges Engaging employees in decision-making Credit and recognition Health, safety and well-being

Growth Opportunities Growth is an integral element of an individuals career graph. If there is no scope of growth within a Company, the employee seeks external opportunities. The essential aspects that an individual looks to grow in are:

Job profile: A low or high job profile underrates or overrates an individuals ability and aptitude. Personal zeal to develop: The Company must also focus on helping the employee reach his target goals. If the individual is dissatisfied with achieving his personal targets, the organization loses him. Training for personal development: The Company should provide training facilities such as technical and communication improvement programs, one-on-one sessions and feedback surveys as electives, in order to motivate employees and also help enhance the employees individual skills.

Bonding and Timely Support Providing a personal or professional supportive work culture is sometimes overlooked by Management. This results in demotivation due to the decrease in interest in work in a particular

team or a Company as a whole. To craft a good, reliable, longlasting bond between the management and an employee, it is important to:

Respect the individual Recruit leaders who can promote team work and enhance relationships Recruit an individual only if necessary Provide support at the time of need Acknowledge individual targets and create growth opportunities

Therefore, it is very important to motivate employees at the workplace in order to retain them. Empowering employees, making them realize their importance and value to the organization, appreciating their efforts and appraising them for their performances will induce self-motivation and help reduce employee turnover.

Retention Strategies In order to retain employees and reduce turnover managers must meet the goals of employees without losing sight of the organization's goals, thereby creating a "win-win" situation. Valance and expectancy theories provided some of the earlier guidance for retaining employees. Valence is the degree to which the rewards offered by an organization align with the needs employees seek to fulfill. High valence indicates that the needs of employees are aligned well with the rewards system an organization offers. Conversely, low valence is a poor alignment of needs with rewards and can lead to low job satisfaction and thereby increase turnover and decrease retention. Expectancy theory details has several factors that can lead to high job satisfaction and high retention rates for organizations. Increasing expectancy in an organization can be done by training employees and thereby making them more confident in their abilities. Increasing instrumentality within an organization will be part of implementing an effective rewards system for attainment of specific goals and accomplishments. However, while these theories may be valid they provide little practical assistant for business managers or human resource practitioners. More modern studies relating to employee engagement demonstrate that by developing a range of strategies that address various drivers of engagement, many positive outcomes can be achieved. These outcomes include higher profitability, improved customer satisfaction, lower absenteeism and lower accident rates as well as higher employee retention. Retention and Motivation Theory

Retention has a direct and causal relationship with employee needs and motivation. Applying a motivation theory model, such as Maslows Hierarchy of Needs, is an effective way of identifying effective retention protocol Each of the five tiers of Maslows hierarchy of needs relates to optimal retention strategy. Since Maslows introduction of his motivation model, organizations have been employing strategies attempting to stimulate each of the five humanitarian needs described above to optimize retention rates. When applied to the organizational model, meeting the self-actualization and esteem needs of an employee tend to correlate to better retention. Physiological, safety, and social needs are important as well, however, and must be addressed to better the work environment. While implementing a retention strategy is ideal, successful satisfying all five needs of employees is not only difficult, but also expensive. That being said, managers who attempt to maximize employee need coverage tend to be more concerned with employee satisfaction Herzberg's Theory An alternative motivation theory to Maslows Hierarchy of Needs is the MotivatorHygiene (Herzbergs) theory. The theories have overlap, but the fundamental nature of each model differs. While Maslows Hierarchy implies the addition or removal of the same need stimuli will enhance or detract from the employees satisfaction, Herzbergs findings indicate that factors garnering job satisfaction are separate from factors leading to poor job satisfaction and employee turnover. Herzbergs system of needs is segmented into motivators and hygiene factors. Like Maslows Hierarchy, motivators are often unexpected bonuses that foster the desire to excel. Hygiene factors include expected conditions that if missing will create dissatisfaction. Examples of hygiene factors include bathrooms, lighting, and the appropriate tools for a given job. Employers must utilize positive reinforcement methods while maintaining expected hygiene factors to maximize employee satisfaction and minimize retention Equity Theory Equity Theory realizes the humanitarian concern with fairness and equality. While one party may be given motivational rewards and opportunities, the individual will assess the work-reward ratio based on similar, external positions. If the individual feels the rewards and motivators do not meet the standard, the employee will either lose motivation, request more compensation, or leave their current position in search of more favorable benefits. Because of this, firms must not only recognize internal obligations, but also attempt to equalize or outperform competition in meeting employee needs. What sets Employee Retention Strategies apart is a steadfast philosophy that:

Uses only research-based, theory-supported approaches to improving employee engagement. Avoided are gimmicks such as employee of the month, suggestion boxes, prizes or other carrots. While commonly used, these short-term fixes fail to produce genuine employee loyalty (more than 60 years of research tells us so!). Employs an easy-to-understand systems approach to ensure the root causes of turnover are addressed and the potential for lasting change unleashed. Customizes all activities to your organizations unique history, current practices and strategic objectives. Also considered are challenges unique to your industry sector, competitive marketplace issues and talent shortages. Involves those responsible for implementing change in actually creating the change, ensuring input and improved shared understanding and support of all initiatives. Integrates hands-on, action-oriented approaches that enable organizations to move forward quickly and effectively Recognizes the research-proven role of no-cost strategies in developing the glue that builds employee loyalty and commitment. Brings to your organization leading-edge organization-development best practices to effectively and quickly build a retention-rich culture.

The Employee Retention Strategies newsletter, which gained this website the No. 1 positions on Google and Yahoo during its publication in the early part of this decade, was a nationally noted source for research-based, fact-driven guidance on enhancing employee retention. (Back issues still are available). From that research come approaches built on a solid foundation of what works (and what doesnt) to gain the commitment of employees in all industries and economic sectors. Added to this base are leading-edge organization-development methodologies to bring your organizations strengths to the fore, to rekindle the dynamic potential of your company to meet todays challenges and to rebuild workforce commitment to the heart of your organizations mission. Spend time reading the topics on this site. Understand more about what truly contributes to employee engagement and retention. Then, call for an individual discussion of your organizations unique retention agenda.

Factors that effect retention of employees "Job satisfaction is defined as "the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs" (Spector, 1997, p. 2). This definition suggests job satisfaction is a general or global affective reaction that individuals hold about their job. While researchers and practitioners most often measure global job satisfaction, there is also interest in measuring different "facets" or "dimensions" of satisfaction. Examination of these facet conditions is often useful for a more careful examination of employee satisfaction with critical job factors. Traditional job satisfaction facets include: co-workers, pay, job conditions, supervision, nature of the work and benefits." (Williams)

job satisfaction describes how content an individual is with his /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 or aptitude, although it is clearly linked. Job design aims to enhance job satisfaction and performance, methods include job rotation, job enlargement, job enrichment and job reengineering. Other influences on satisfaction include the management style and culture, employee involvement, empowerment and autonomous work position. 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. Some questioners ask yes or no questions while others ask to rate satisfaction on 1-5 scale (where 1 represents "not at all satisfied" and 5 represents "extremely satisfied") One of the biggest preludes to the study of job satisfaction was the Hawthorne studies. These studies (19241933), primarily credited toElton Mayo of the Harvard Business School, sought to find the effects of various conditions (most notably illumination) on workers productivity. These studies ultimately showed that novel changes in work conditions temporarily increase productivity (called the Hawthorne Effect). It was later found that this increase resulted, not from the new conditions, but from the knowledge of being observed. This finding provided strong evidence that people work for purposes other than pay, which paved the way for researchers to investigate other factors in job satisfaction. Scientific management (aka Taylorism) also had a significant impact on the study of job satisfaction. Frederick Winslow Taylors 1911 book, Principles of Scientific Management, argued that there was a single best way to perform any given work task. This book contributed to a change in industrial production philosophies, causing a shift from skilled labor and piecework towards the more modern of assembly lines andhourly wages. The initial use of scientific management by industries greatly increased productivity because workers were forced to work at a faster pace. However, workers became exhausted and dissatisfied, thus leaving researchers with new questions to answer regarding job satisfaction. It should also be noted that the work of W.L. Bryan, Walter Dill Scott, and Hugo Munsterberg set the tone for Taylors work. Some argue that Maslows hierarchy of needs theory, a motivation theory, laid the foundation for job satisfaction theory. This theory explains that people seek to satisfy five specific needs in life physiological needs, safety needs, social needs, self-esteem needs, and self-actualization. This model served as a good basis from which early researchers could develop job satisfaction theories. Job satisfaction can also be seen within the broader context of the range of issues which affect an individual's experience of work, or theirquality of working life. Job satisfaction can be understood in terms of its relationships with other key factors, such as general well-being, stress at work, control at work, home-work interface, and working conditions. Models of job satisfaction Affect Theory Edwin A. Lockes Range of Affect Theory (1976) is arguably the most famous job satisfaction model. The main premise of this theory is that satisfaction is determined by a discrepancy between

what one wants in a job and what one has in a job. Further, the theory states that how much one values a given facet of work (e.g. the degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes when expectations are/arent met. When a person values a particular facet of a job, his satisfaction is more greatly impacted both positively (when expectations are met) and negatively (when expectations are not met), compared to one who doesnt value that facet. To illustrate, if Employee A values autonomy in the workplace and Employee B is indifferent about autonomy, then Employee A would be more satisfied in a position that offers a high degree of autonomy and less satisfied in a position with little or no autonomy compared to Employee B. This theory also states that too much of a particular facet will produce stronger feelings of dissatisfaction the more a worker values that facet. Dispositional Theory Another well-known job satisfaction theory is the Dispositional Theory Template:JacksonApril 2007. It is a very general theory that suggests that people have innate dispositions that cause them to have tendencies toward a certain level of satisfaction, regardless of ones job. This approach became a notable explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over time and across careers and jobs. Research also indicates that identical twins have similar levels of job satisfaction. A significant model that narrowed the scope of the Dispositional Theory was the Core Selfevaluations Model, proposed by Timothy A. Judge, Edwin A. Locke, and Cathy C. Durham in 1997.[5] Judge et al. argued that there are four Core Self-evaluations that determine ones disposition towards job satisfaction: self-esteem, general self-efficacy, locus of control, and neuroticism. This model states that higher levels of self-esteem (the value one places on his/her self) and general self-efficacy (the belief in ones own competence) lead to higher work satisfaction. Having an internal locus of control (believing one has control over her\his own life, as opposed to outside forces having control) leads to higher job satisfaction. Finally, lower levels of neuroticism lead to higher job satisfaction.[5] Two-Factor Theory (Motivator-Hygiene Theory) Frederick Herzbergs Two factor theory (also known as Motivator Hygiene Theory) attempts to explain satisfaction and motivation in the workplace[6] This theory states that satisfaction and dissatisfaction are driven by different factors motivation and hygiene factors, respectively. An employees motivation to work is continually related to job satisfaction of a subordinate. Motivation can be seen as an inner force that drives individuals to attain personal and organizational goals (Hoskinson, Porter, & Wrench, p. 133). Motivating factors are those aspects of the job that make people want to perform, and provide people with satisfaction, for example achievement in work, recognition, promotion opportunities. These motivating factors are considered to be intrinsic to the job, or the work carried out.[6] Hygiene factors include aspects of the working environment such as pay, company policies, supervisory practices, and other working conditions.[6] While Hertzberg's model has stimulated much research, researchers have been unable to reliably empirically prove the model, with Hackman & Oldham suggesting that Hertzberg's original formulation of the model may have been a methodological artifact.[6] Furthermore, the theory does not consider individual differences, conversely predicting all employees will react in an identical manner to changes in motivating/hygiene factors.[6] Finally, the model has been criticised in that it does not specify how motivating/hygiene factors are to be measured.[6]

Job Characteristics Model Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a framework to study how particular job characteristics impact on job outcomes, including job satisfaction. The model states that there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) which impact three critical psychological states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etc.).[7] The five core job characteristics can be combined to form a motivating potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an employee's attitudes and behaviors----. A meta-analysis of studies that assess the framework of the model provides some support for the validity of the JCM. Communication Overload and Communication Under load One of the most important aspects of an individuals work in a modern organization concerns the management of communication demands that he or she encounters on the job (Krayer, K. J., & Westbrook, L., p. 85). Demands can be characterized as a communication load, which refers to the rate and complexity of communication inputs an individual must process in a particular time frame (Faraca, Monge, & Russel, 1977). Individuals in an organization can experience communication over-load and communication under- load which can affect their level of job satisfaction. Communication overload can occur when an individual receives too many messages in a short period of time which can result in unprocessed information or when an individual faces more complex messages that are more difficult to process (Farace, Monge, & Russel, 1997). Due to this process, given an individuals style of work and motivation to complete a task, when more inputs exist than outputs, the individual perceives a condition of overload (Krayer, K. J., & Westbrook, L., p. 86) which can be positively or negatively related to job satisfaction. In comparison, communication under load can occur when messages or inputs are sent below the individuals ability to process them (Farace, Monge, & Russel, 1997). According to the ideas of communication over-load and under-load, if an individual does not receive enough input on the job or is unsuccessful in processing these inputs, the individual is more likely to become dissatisfied, aggravated, and unhappy with their work which leads to a low level of job satisfaction. Measuring job satisfaction There are many methods for measuring job satisfaction. By far, the most common method for collecting data regarding job satisfaction is theLikert scale (named after Rensis Likert). Other less common methods of for gauging job satisfaction include: Yes/No questions, True/False questions, point systems, checklists, and forced choice answers. This data are sometimes collected using an Enterprise Feedback Management (EFM) system. The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a specific questionnaire of job satisfaction that has been widely used. It measures ones satisfaction in five facets: pay, promotions and promotion opportunities, coworkers, supervision, and the work itself. The scale is simple, participants answer either yes, no, or cant decide (indicated by ?) in response to whether given statements accurately describe ones job. The Job in General Index is an overall measurement of job satisfaction. It is an improvement to the Job Descriptive Index because the JDI focuses too much on individual facets and not enough on work satisfaction in general.

Other job satisfaction questionnaires include: the Minnesota Satisfaction Questionnaire (MSQ), the Job Satisfaction Survey (JSS), and theFaces Scale. The MSQ measures job satisfaction in 20 facets and has a long form with 100 questions (five items from each facet) and a short form with 20 questions (one item from each facet). The JSS is a 36 item questionnaire that measures nine facets of job satisfaction. Finally, the Faces Scale of job satisfaction, one of the first scales used widely, measured overall job satisfaction with just one item which participants respond to by choosing a face.. Superior-Subordinate Communication Superior-subordinate communication is an important influence on job satisfaction in the workplace. The way in which subordinates perceive a supervisors behavior can positively or negatively influence job satisfaction. Communication behavior such as facial expression, eye contact, vocal expression, and body movement is crucial to the superior-subordinate relationship (Teven, p. 156). Nonverbal messages play a central role in interpersonal interactions with respect to impression formation, deception, attraction, social influence, and emotional expression (Burgoon, Buller, & Woodall, 1996). Nonverbal immediacy from the supervisor helps to increase interpersonal involvement with their subordinates impacting job satisfaction. The manner in which supervisors communicate their subordinates may be more important than the verbal content (Teven, p. 156). Individuals who dislike and think negatively about their supervisor are less willing to communicate or have motivation to work where as individuals who like and think positively of their supervisor are more likely to communicate and are satisfied with their job and work environment. The relationship of a subordinate with their supervisor is a very important aspect in the workplace. Therefore, a supervisor who uses nonverbal immediacy, friendliness, and open communication lines is more willing to receive positive feedback and high job satisfaction from a subordinate where as a supervisor who is antisocial, unfriendly, and unwilling to communicate will naturally receive negative feedback and very low job satisfaction from their subordinates in the workplace. Emotions Mood and emotions form the affective element of job satisfaction. (Weiss and Cropanzano, 1996).[9] Moods tend to be longer lasting but often weaker states of uncertain origin, while emotions are often more intense, short-lived and have a clear object or cause. There is some evidence in the literature that moods are related to overall job satisfaction.[10][11] Positive and negative emotions were also found to be significantly related to overall job satisfaction[12] Frequency of experiencing net positive emotion will be a better predictor of overall job satisfaction than will intensity of positive emotion when it is experienced.[12] Emotion work (or emotion management) refers to various types of efforts to manage emotional states and displays. Emotion management includes all of the conscious and unconscious efforts to increase, maintain, or decrease one or more components of an emotion. Although early studies of the consequences of emotional work emphasized its harmful effects on workers, studies of workers in a variety of occupations suggest that the consequences of emotional work are not uniformly negative.[13] It was found that suppression of unpleasant emotions decreases job satisfaction and the amplification of pleasant emotions increases job satisfaction.[14] The understanding of how emotion regulation relates to job satisfaction concerns two models:

1. Emotional dissonance. Emotional dissonance is a state of discrepancy between public displays of emotions and internal experiences of emotions,[15][16] that often follows the process of emotion regulation. Emotional dissonance is associated with high emotional exhaustion, low organizational commitment, and low job satisfaction.[17][18] 2. Social interaction model. Taking the social interaction perspective, workers emotion regulation might beget responses from others during interpersonal encounters that subsequently impact their own job satisfaction. For example: The accumulation of favorable responses to displays of pleasant emotions might positively affect job satisfaction.[14] performance of emotional labor that produces desired outcomes could increase job satisfaction. Relationships and practical implications Job Satisfaction can be an important indicator of how employees feel about their jobs and a predictor of work behaviours such as organizational citizenship, absenteeism, and turnover.[ Further, job satisfaction can partially mediate the relationship of personality variables and deviant work behaviors.] One common research finding is that job satisfaction is correlated with life satisfaction.] This correlation is reciprocal, meaning people who are satisfied with life tend to be satisfied with their job and people who are satisfied with their job tend to be satisfied with life. However, some research has found that job satisfaction is not significantly related to life satisfaction when other variables such as non work satisfaction and core self-evaluations are taken into account. An important finding for organizations to note is that job satisfaction has a rather tenuous correlation to productivity on the job. This is a vital piece of information to researchers and businesses, as the idea that satisfaction and job performance are directly related to one another is often cited in the media and in some non-academic management literature. A recent metaanalysis found an average uncorrected correlation between job satisfaction and productivity to be r = 0.18; the average true correlation, corrected for research artifacts and unreliability, was r = 0.30 Further, the meta-analysis found that the relationship between satisfaction and performance can be moderated by job complexity, such that for high-complexity jobs the correlation between satisfaction and performance is higher ( = 0.52) than for jobs of low to moderate complexity ( = 0.29). Job Satisfaction also have high relationship with intention to quit. It is found in many research that Job Satisfaction can lead to Intention to Stay / Quit in an organization (Kim et al., 1996). Recent research has also shown that Intention to Quit can have effect like poor performance orientation, organizational deviance, and poor organizational citizenship behaviours. In short, the relationship of satisfaction to productivity is not necessarily straightforward and can be influenced by a number of other work-related constructs, and the notion that "a happy worker is a productive worker" should not be the foundation of organizational decision-making. With regard to job performance, employee personality may be more important than job satisfaction The link between job satisfaction and performance is thought to be a spurious relationship; instead, both satisfaction and performance are the result of personality

. Everybody understands that some turnover is functional (or beneficial to the organization) and some turnover is dysfunctional (bad for the organization). And we all understand that some turnover is necessary, otherwise organizations would stagnate. So, the fundamental reason that employees leave organizations is that they are not satisfied. Their dissatisfaction could occur on many levels. Much published research on turnover indicates that money is often NOT the most important reason. Employees leave for other reasons such as career growth and development, or a change in life circumstances, or factors like that. Its handy to think of the reasons for dissatisfaction in terms of push factors (things that make employees more dissatisfied) and pull factors (things that make employees more satisfied). Heres a diagram.

The factors that are going to make some MORE dissatisfied are things like:

poor pay

poor compensation poor work conditions lack of promotions poor benefits offering lack of job security

Curiously enough, if you were to fix all these factors, youd still not get a satisfied employee. If you fixed everything above, youd have an employee sitting somewhere in the middle of the satisfaction scale, so they would be neither satisfied nor dissatisfied. The factors that make an employee MORE satisfied are things like:

good leadership in the organization good relationship with their manager recognition for their achievements (not necessarily monetary recognition) advancement in their careers personal growth and development feedback and support (meaningful feedback, not just naked criticism) clear direction and objectives

So there is a lot that can be done on the positive side to increase satisfaction. Naturally, there are of course many opportunities on this side of the house where a good talent management solution can helps things along. Employee engagement Employee engagement, also called worker engagement, is a business management concept. An "engaged employee" is one who is fully involved in, and enthusiastic about their work, and thus will act in a way that furthers their organization's interests. According to Scarlett Surveys, "Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization which profoundly influences their willingness to learn and perform at work". Thus engagement is distinctively different from employee satisfaction, motivation and organizational culture. Employee Engagement is the extent to which employee commitment, both emotional and intellectual, exists relative to accomplishing the work, mission, and vision of the organisation. Engagement can be seen as a heightened level of ownership where each employee wants to do whatever they can for the benefit of their internal and external customers, and for the success of the organization as a whole. Employee engagement was described in the academic literature by Schmidt et al. (1993). A modernized version of job satisfaction, Schmidt et al.'s influential definition of engagement was "an employee's involvement with, commitment to, and satisfaction with work." This integrates the classic constructs of job satisfaction (Smith et al., 1969), and organizational commitment (Meyer &

Allen, 1991). Harter and Schmidt's (2003) most recent meta-analysis can be useful for understanding the impact of engagement. Linkage research (e.g., Treacy) received significant attention in the business community because of correlations between employee engagement and desirable business outcomes such as retention of talent, customer service, individual performance, team performance, business unit productivity, and even enterprise-level financial performance (e.g., Rucci at al, 1998 using data from Sears). Some of this work has been published in a diversity context (e.g., McKay, Avery, Morris et al., 2007). Directions of causality were discussed by Schneider and colleagues in 2003. Employee engagement is derived from studies of morale or a group's willingness to accomplish organizational objectives which began in the 1920s. The value of morale to organizations was matured by US Army researchers during WWII to predict unity of effort and attitudinal battlereadiness before combat. In the postwar mass production society that required unity of effort in execution, (group) morale scores were used as predictors of speed, quality and militancy. With the advent of the knowledge worker and emphasis on individual talent management (stars), a term was needed to describe an individual's emotional attachment to the organization, fellow associates and the job. Thus the birth of the term "employee engagement" which is an individual emotional phenomenon whereas morale is a group emotional phenomenon of similar characteristics. In other words, employee engagement is the raw material of morale composed of 15 intrensic and extrensic attitudinal drivers.(e.g. Scarlett Surveys 2001). Research Studies Engaged employees care about the future of the company and are willing to invest discretionary effort.[1] Engaged employees feel a strong emotional bond to the organisation that employs them(Robinson),which results in higher retention levels and productivity levels and lower absenteeism. When reliably measured, positive employee engagement can be causally related or correlated to specific positive business outcomes by workgroup and job type. Emotional attachment Only 31% of employees are actively engaged in their jobs. These employees work with passion and feel a profound connection to their company. People that are actively engaged help move the organization forward. 88% of highly engaged employees believe they can positively impact quality of their organization's products, compared with only 38% of the disengaged. 72% of highly engaged employees believe they can positively affect customer service, versus 27% of the disengaged. 68% of highly engaged employees believe they can positively impact costs in their job or unit, compared with just 19% of the disengaged Engaged employees feel a strong emotional bond to the organization that employs them. This is associated with people demonstrating a willingness to recommend the organization to others and commit time and effort to help the organization succeed It suggests that people are motivated by intrinsic factors (e.g. personal growth, working to a common purpose, being part of a larger process) rather than simply focusing on extrinsic factors (e.g., pay/rewardInvolvement Eileen Appelbaum and her colleagues (2000) studied 15 steel mills, 17 apparel manufacturers, and 10 electronic instrument and imaging equipment producers. Their purpose was to compare traditional production systems with flexible high-performance production systems involving teams, training, and incentive pay systems. In all three industries, the plants utilizing high-involvement practices showed superior performance. In addition, workers in the high-involvement plants showed more positive attitudes, including trust, organizational commitment and intrinsic

enjoyment of the work.[4] The concept has gained popularity as various studies have demonstrated links with productivity. It is often linked to the notion of employee voice and empowerment.[7] Commitment It has been routinely found that employee engagement scores account for as much as half of the variance in customer satisfaction scores. This translates into millions of dollars for companies if they can improve their scores. Studies have statistically demonstrated that engaged employees are more productive, more profitable, more customer-focused, safer, and less likely to leave their employer. Employees with the highest level of commitment perform 20% better and are 87% less likely to leave the organization, which indicates that engagement is linked to organizational performance.[8] For example, at the beverage company of Molson Coors, it was found that engaged employees were five times less likely than non-engaged employees to have a safety incident and seven times less likely to have a lost-time safety incident. In fact, the average cost of a safety incident for an engaged employee was $63, compared with an average of $392 for a non-engaged employee. Consequently, through strengthening employee engagement, the company saved $1,721,760 in safety costs in 2002. In addition, savings were found in sales performance teams through engagement. In 2005, for example, low-engagement teams were seen falling behind engaged teams, with a difference in performance-related costs of low- versus high-engagement teams totaling $2,104,823.3 (Lockwood). Life insurance industry Two studies of employees in the life insurance industry examined the impact of employee perceptions that they had the power to make decisions, sufficient knowledge and information to do the job effectively, and rewards for high performance. Both studies included large samples of employees (3,570 employees in 49 organizations and 4,828 employees in 92 organizations). In both studies, high-involvement management practices were positively associated with employee morale, employee retention, and firm financial performance.[4] Watson Wyatt found that high-commitment organizations (one with loyal and dedicated employees) out-performed those with low commitment by 47% in the 2000 study and by 200% in the 2002 study.[9] Productivity In a study of professional service firms, the Hay Group found that offices with engaged employees were up to 43% more productive The most striking finding] is the almost 52% gaps in operating incomes between companies with highly engaged employees and companies whose employees have low-engagement scores. Highengagement companies improved 19.2% while low-engagement companies declined 32.7% in operating income during the study period[citation needed]. For example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that account executives in the wholesale division who were actively disengaged produced 28% less revenue than their colleagues who were engaged. Furthermore, those not engaged generated 23% less revenue than their engaged counterparts. Engaged employees also outperformed the not engaged and actively disengaged employees in other divisions.[1] [edit]Generating engagement

Recent research has focused on developing a better understanding of how variables such as quality of work relationships and values of the organization interact and their link to important work outcomes 84% of highly engaged employees believe they can positively impact the quality of their organization's products, compared with only 31 percent of the disengaged.[1] From the perspective of the employee, "outcomes" range from strong commitment to the isolation of oneself from the organization The study done by the Gallup Management Journal has shown that only 29% of employees are actively engaged in their jobs. Those "engaged" employees work with passion and feel a strong connection to their company. About of the business units scoring above the median on employee engagement also scored above the median on performance .Moreover, 54% of employees are not engaged meaning that they go through each workday putting time but no passion into their work. Only about of companies below the median on employee engagement scored above the median on performance Access to a reliable model enables organizations to conduct validation studies to establish the relationship of employee engagement to productivity/performance and other measures linked to effectiveness. It is an important principle of industrial and organizational psychology (i.e. the application of psychological theories, research methods, and intervention strategies involving workplace issues) that validation studies should be anchored in reliable scales (i.e. organized and related groups of items) and not simply focus on individual elements in isolation. To understand how high levels of employee engagement affect organizational performance/productivity it is important to have an a priori model that demonstrates how the scales interact. There is also overlap between this concept and those relating to well-being at work and the psychological contract. Research by Gallup Consulting has shown a strong correlation between the degree of well-being of an individual and the extent to which they are engaged as am employee - high well-being yields high engagement. A well and engaged employee is likely to have less sick days, lowering the cost of lost productivity to their organization, and come to work energized and focused. A well and engaged employee is efficient and effective and a valuable asset in the workplace. As employee productivity is clearly connected with employee engagement, creating an environment that encourages employee engagement is considered to be essential in the effective management of human capital. Drivers of Engagement While it is possible to measure engagement itself through employee surveys, this does not assist in identifying areas for improvement within organisations. There are a range of factors, known as drivers, that are thought to increase overall engagement. By managing the drivers, an organisation can effectively manage engagement levels of its employees. Drivers such as communication, performance clarity and feedback, organisational culture, rewards and recognition, relationships with managers and peers, career development opportunities and knowledge of the organisation's goals and vision are some of the factors that facilitate employee engagement. Some points from the research are presented below: * Employee perceptions of job importance - According to a 2006 study by Gerard Seijts and Dan Crim, "...an employees attitude toward the job['s importance] and the company had the greatest impact on loyalty and customer service then all other employee factors combined." * Employee clarity of job expectations - "If expectations are not clear and basic materials and equipment not provided, negative emotions such as boredom or resentment may result, and the employee may

then become focused on surviving more than thinking about how he can help the organization succeed." * Career advancement/improvement opportunities - "Plant supervisors and managers indicated that many plant improvements were being made outside the suggestion system, where employees initiated changes in order to reap the bonuses generated by the subsequent cost savings." * Regular feedback and dialogue with superiors - "Feedback is the key to giving employees a sense of where theyre going, but many organizations are remarkably bad at giving it."[5] "'What I really wanted to hear was 'Thanks. You did a good job.' But all my boss did was hand me a check.'"[10] * Quality of working relationships with peers, superiors, and subordinates - "...if employees' relationship with their managers is fractured, then no amount of perks will persuade the employees to perform at top levels. Employee engagement is a direct reflection of how employees feel about their relationship with the boss."[12] * Perceptions of the ethos and values of the organization - "'Inspiration and values' is the most important of the six drivers in our Engaged Performance model. Inspirational leadership is the ultimate perk. In its absence, [it] is unlikely to engage employees."[10] * Effective Internal Employee Communications - which convey a clear description of "what's going on". "'If you accept that employees want to be involved in what they are doing then this trend is clear (from small businesses to large global organisations). The effect of poor internal communications is seen as its most destructive in global organisations which suffer from employee annexation - where the head office in one country is buoyant (since they are closest to the action, know what is going on, and are heavily engaged) but its annexes (who are furthest away from the action and know little about what is happening) are dis-engaged. In the worst case, employee annexation can be very destructive when the head office attributes the annex's low engagement to its poor performance when its poor performance is really due to its poor communications. * Reward to engage - Look at employee benefits and acknowledge the role of incentives. "An incentive to reward good work is a tried and test way of boosting staff morale and enhancing engagement." There are a range of tactics you can employ to ensure your incentive scheme hits the mark with your workforce such as: Setting realistic targets, selecting the right rewards for your incentive programme, communicating the scheme effectively and frequently, have lots of winners and reward all achievers, encouraging sustained effort, present awards publicly and evaluate the incentive scheme regularly

One of the most salient career paradigm shifts has been the change from job security to employability security. Today, the engagement and retention of high potential talent is a competitive advantage to all organizations. What do we know about engagement and its relationship to productivity and retention? Several recent studies provide some answers to this question. For example, Aon Consulting reported in a recent research study of about 1,800 workers that employee commitment is declining in every industry, age group, income group and job classification. The Gallup organization also recently reported evidence of declining employee

engagement in a major survey that found only 26 percent of employees consider themselves "actively engaged" in their work. A change in the psychological contract with employees over the last few years has contributed to a set of critical paradigms shifts about careering in the US. The old sense of job security has given way to the concept of employability security where developing just in time competencies results in the ability to be competitive in a global market place. In the old paradigm employees expected to be with companies for long periods of time (job jumping was typically seen as a sign of instability, immaturity or loyalty) and an expectation of rising responsibilities and salary/benefits. Todays IPOD generation employees have typically experienced mergers, acquisitions, bankruptcy, extensive downsizing and failures resulting in a focus on continuous relearning, development and work/family balance. Perceptions of stress at work are quite high with several studies suggesting 40 % to 60% of all employees rate their jobs as being stress or extremely stressful with impact on family balance and health. In a recent poll by US based TrueCareers, more than 70% of workers do not think there is a healthy balance between work and family lives. More than 50% of the 1,626 were exploring new career opportunities because of the inability to manage both work and family stressors. No doubt, this helps to explain why some professional women have chosen to stop out from professional careers after a large investment in formal education and training much to the display of their employers. Employers of choice today understand these changing career paradigm shifts and have developed programs, benefits and cultural change to enhance the commitment and retention of its talent. 2 OLD PARADIGMS Job Security Longitudinal Career Paths Job/Person Fit Organizational Loyalty Career Success Academic Degree Position/Title Full-Time Employment

 Retirement Single Jobs/Careers Change in jobs based on fear Promotion tenure based NEW PARADIGMS Employability Security Alternate Career Paths Person/Organization Fit Job/Task Loyalty Work/Family Balance Continuous Relearning Competencies/Development Contract Employment Career Sabbaticals Multiple Jobs/Careers Change in jobs based on growth Promotion performance based Workforce 2010: Changing Career Paradigms Some evidence of the changing career paradigms comes from a recent study by Career Systems International in 2005. They surveyed over 7,500 employees in diverse industries about retention factorsthings available in organizations that engendered commitment and a willingness to stay. The top five retention factors included: 1) Exciting Work/Challenge (48.4%); 2) Career growth/learning (42.6%); 3) Relationships/working with great people (41.8%); 4) Fair pay (31.8%); and 5) Supportive management/great boss (25.1%). These findings suggest that engagement can be enhanced in organizations that emphasize development, leadership effectiveness and collaborative cultures. Finally, a recent meta-analysis of over 7,939 business units in 38 companies explored the relationship at the business-unit level between employee satisfaction-engagement and the business-

unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents (Harter & Schmidt, 2002). Generalizable relationships, large enough to have substantial practical value, were found between unit-level employee satisfaction-engagement and these business-unit outcomes suggesting that management practices that affect satisfaction can have bottom line results on productivity and profit. How employee engagement affects job satisfaction, retention and perceptions of job stress were the focus of study.This study explored the relationship between employee satisfaction and engagement and several specific organizational outcomes including employee retention, job satisfaction, employee engagement and perceived stress in a large food service company as part of their annual employee satisfaction surveys over a two year period. The employee surveys were distributed to all corporate and field employees in both 2002 and 2004. Single item measures were used to assess perceptions of stress, job satisfaction, engagement, perceived sensitivity to work and family issues, and retention (likeliness of leaving within the next 12 months). Prior published research supports the validity of single item measures of these organizational outcomes. Employee Engagement Index A subset of 12 questions from the broader employee survey was used to measure the concept of involvement and engagement. These questions were combined into a single scale which demonstrated strong internal consistency reliability (Cronbachs alpha .88). High scores on this scale represent an overall measure of favorable employee involvement, commitment and engagement with the organization and job. Despite some possible criticisms, these single item measures can be considered both practical and valid. For example, a meta-analysis by Wanous, Reichers, & Hudy (1997) has shown that single-item measures of job satisfaction are highly correlated with multitem job satisfaction scales. A global indicator of job satisfaction, retention and overall job stress would appear to be valid and economic measures Results from the statistical analyses revealed that employees who experience lower engagement, commitment and involvement with his/her organization and job reported

significantly higher intentions to leave the organization within 12 months, greater levels of perceived work stress and lower overall job satisfaction and engagement (all ps < .01). These results were also cross validated with a separate employee sample 2 years later using the same employee engagement index items and identical stress, retention, and job satisfaction questions. Results of these subsequent analyses were also significant for each of the independent measures in the ANOVAs. This study provides support for the hypothesis that employee engagement can have a significant impact on perceptions of stress, overall job satisfaction and retention. Employees who were most engaged were less likely to consider leaving within 12 months, were more engaged and satisfied with work and reported significantly less stress compared to those who were less engaged Talent management refers to the skills of attracting highly skilled workers, of integrating new workers, and developing and retaining current workers to meet current and future business objectives. Talent management in this context does not refer to the management ofentertainers. Companies engaging in a talent management strategy shift the responsibility of employees from the human resources department to all managers throughout the organization. The process of attracting and retaining profitable employees, as it is increasingly more competitive between firms and of strategic importance, has come to be known as "the war for talent." Talent management is also known as HCM (Human Capital Management). The term "talent management" means different things to different organizations. To some it is about the management of high-worth individuals or "the talented" whilst to others it is about how talent is managed generally - i.e. on the assumption that all people have talent which should be identified and liberated Talent management is a term that emerged in the 1990s to incorporate developments in Human Resources Management which placed more of an emphasis on the management of human resources or talent. The term was coined by David Watkins of Softscape published in an article in 1998 ; however the connection between human resource development and organizational effectiveness has been established since the 1970s. Talent management is part of the Evolution of Talent Measurement Technologies. The issue with many companies today is that their organizations put tremendous effort into attracting employees to their company, but spend little time into retaining and developing talent. A talent management system must be worked into the business strategy and implemented in daily processes throughout the company as a whole. It cannot be left solely to the human resources department to attract and retain employees, but rather must be practiced at all levels of the organization. The business strategy must include responsibilities for line managers to develop the skills of their immediate subordinates. Divisions within the company should be openly sharing information with other departments in order for employees to gain knowledge of the overall

organizational objectives. Companies that focus on developing their talent integrate plans and processes to track and manage their employee talent, including the following:

Sourcing, attracting, recruiting and on boarding qualified candidates with competitive backgrounds Managing and defining competitive salaries Training and development opportunities Performance management processes Retention programs Promotion and transitioning

The talent management strategy may be supported by technology such as HRIS (HR Information Systems) or HRMS (HR Management Systems). Modern techniques also use Competency-based management methodologies to capture and utilize competencies appropriate to strategically drive an organization's long term plans. Human Capital Management Companies that engage in talent management (Human Capital Management) are strategic and deliberate in how they source, attract, select, train, develop, retain, promote, and move employees through the organization. Research done on the value of such systems implemented within companies consistently uncovers benefits in these critical economic areas: revenue, customer satisfaction, quality, productivity, cost, cycle time, and market capitalization. The mindset of this more personal human resources approach seeks not only to hire the most qualified and valuable employees but also to put a strong emphasis on retention. The major aspects of talent management practiced within an organization must consistently include: performance management leadership development workforce planning/identifying talent gaps recruiting Evaluations

From a talent management standpoint, employee evaluations concern two major areas of measurement: performance and potential. Current employee performance within a specific job has always been a standard evaluation measurement tool of the profitability of an employee. However, talent management also seeks to focus on an employees potential, meaning an employees future performance, if given the proper development of skills and increased responsibility. Competencies and Talent Management This term "talent management" is usually associated with competency-based management. Talent management decisions are often driven by a set of organizational core competencies as well as position-specific competencies. The competency set may include knowledge, skills, experience, and personal traits (demonstrated through defined behaviors). Older competency models might also contain attributes that rarely predict success (e.g. education, tenure, and diversity factors that are illegal to consider in relation to job performance in many countries, and unethical within

organizations). New techniques involve creating a Competency architecture for the organization that includes a Competency dictionary to hold the competencies in order to build job descriptions. Talent marketplace A talent marketplace is an employee training and development strategy that is set in place within an organization. It is found to be most beneficial for companies where the most productive employees can pick and choose the projects and assignments that are most ideal for the specific employee. An ideal setting is where productivity is employee centric and tasks are described as judgment-based work, for example, in a law firm. The point of activating a talent marketplace within a department is to harness and link individuals particular skills (project management or extensive knowledge in a particular field) with the task at hand. Examples of companies that implement the talent marketplace strategy are American Express and IBM.[10] Current Application of Talent Management In current economic conditions, many companies have felt the need to cut expenses. This should be the ideal environment to execute a talent management system as a means of optimizing the performance of each employee and the organization. However, within many companies the concept of human capital management has just begun to develop. In fact, only 5 percent of organizations say they have a clear talent management strategy and operational programs in place today. Talent Review To develop a clear talent management strategy and to increase awareness of available talent and successors, all organizations should conduct regular Talent Review meetings to be prepared for a variety of business changes, such as mergers, company growth, or a decrease in talent needs. In the same way that all companies have regular meetings and reports regarding their financial status and budgetary needs, the Talent Review meeting is designed to review the current talent status and future successor needs in the organization. The Talent Review meeting is an important part of the overall talent management process; it is designed to review the performance and career potential of employees, to discuss possible vacancy risks of current employees, to identify successors and top talent in the organization, and to create development action plans to prepare employees for future roles in the organization. "This is what talent management is all about gathering information about talent, analyzing their career interests and organizational business needs, identifying top talent and successes, and developing these individuals to reduce the risk of losing the best people and experiencing extensive leadership gaps when turnover occurs." Employee Empowerment To completely benefit from employees knowledge, organizations need a management style that focuses on developing and empowering employees. Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service.

Performance appraisal Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees CHARACTERISTICS 1. Performance Appraisal is a process. 2. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 3. It is scientific and objective study. Formal procedures are used in the study. 4. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. 5. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee. PROCESS The process of performance appraisal: 1. Establishing performance standards 2. Communicating the Standards 3. Measuring Performance 4. Comparing the actual with the standards 5. Discussing the appraisal Types of environment the employee needs in an organization Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc. Support environment: Organization can provide support in the form of work-life balance. Work life balance includes: Flexible hours Telecommuting Dependent care Alternate work schedules Vacations Wellness

Work environment: It includes efficient managers, supportive co-workers,challenging work, involvement in decision-making, clarity of work andresponsibilities, and recognition. Lack or absence of such environment pushesemployees to look for new opportunities. The environment should be such that theemployee feels connected to the organization in every respect. Growth and CareerGrowth and development are the integral part of every individuals career. If an employee can not foresee his path of career development in his currentorganization, there are chances that hell leave the organization as soon as he gets an opportunity.The important factors in employee growth that an employee looksfor himself are:Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high. Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations can not keep aside the individual goals of employees and foster organizations goals. Employees priority is to work for themselves and later on comes the organization. If hes not satisfied with his growth, hell not be able to contribute in organization growth. 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, theyll leave the organization for better jobs. Organization should not limit the resources on which organizations 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 Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees. 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 employees interest and he becomes demotivated. It leads to less satisfaction and eventually attrition. A supportive work culture helps grow employee professionally and boosts employee satisfaction. 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 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 in different departments as well. This will induce competition as well as improve the Relationship among collegues. Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise hell feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised.Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and hell show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc. Individual development: Taking proper care of employees includes acknowledgement to the employees dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc. Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones. Support Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation. Employers can also provide valuable feedback to employees and make them feel valued to the organization. The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance Programs, conseling services, etc Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows

What attracts the employee and makes a company a best place to work for? Survey of 3,500 companies that represents the voice of close to 9,000 employees, it is easy to make blanket statements on trends. It would be chimerical to do that in a market as dynamic as India. But with hirers ready to flood the jobs landscape and the Indian employee emerges wiser from the tough job market of the last two years, Business Today in its tenth annual edition of Best Companies to Work For uncovers new facets of talent management in a continuum called the Indian workplace. 2011, the survey makes for relevant, if not critical, reading for almost anyone in India: workers, managers, HR chiefs, CEOs, businessmen.... And, even for spouses, parents and children because, for the first time, there are strong signals from the workplace that the life part of the work-life balance, acknowledged cursorily until now, is increasingly becoming a deciding factor in jobs.

Dive straight in. Will you work for a company that you have not even heard about? Code writer Shireen Fathima did not think she would but has done exactly that. Until July 2010, Fathima, 28, was working with a brand that is as big as it can get - Infosys Technologies, the No. 1 company in this year's Best Companies to Work For ranking. After six years and three months at Infosys, Fathima decided to move on, but not to another workplace teeming with thousands and thousands of employees. Soon, she zeroed in on a workplace of her choice: a small company closer to her home and one that gives her more exposure. "I had not even heard of my current employer," says Fathima. She is a Technical Lead at Marlabs Software, an information technology solutions firm with revenues of $100 million and 1,800 employees globally, including 1,000 in India. "I have discovered a huge comfort factor in a smaller set-up. Everybody acknowledges your work and I feel my worth for the credit I get," she says. Compare this with some 128,000 employees at India's second-largest IT company by revenues. "At Infosys you can get lost. Brand mattered in the beginning, but not any more," she concludes. Brave new world Shireen Fathima left Infosys to join a company whose name she had not even heard of. She says she found comfort with a smaller set-up

Fathima is part of a growing group of people we came across while meeting employees for the BTIndicus-PeopleStrong Survey of Best Companies to Work For. This group is conscious and mindful of "Brand Self ", as a talent watcher puts it. Employees are overwhelmingly focused on their own careers. "My career is my business," goes the reasoning. "You may be a great employer, but if you are not making my career grow, I leave."

In the survey, 75 per cent of the respondents said they will leave an organisation if they feel their career is not growing. Ganesh Shermon, who heads the People & Change Practice at KPMG, has an explanation for this phenomenon. In place of the larger-than-life institutions earlier, it is the individual who has taken centre stage. His take: Social media have given people an identity. An employee can stand up, disagree and be listened to. "Companies are telling the employee that he is the brand and these employees in turn help build the employer brand of the company," says Shermon. Pallavi Aron of the Class of 2011 at MDI, Gurgaon, with a classmate. Pallavi says her dream employer is P&G for its worklife integration initiatives Cigarettes and personal care products company ITC vouches for the trend, as the organised workforce expands at a fast clip. "This is because the young managers focus on their own career rather than feeling a sense of belonging to the organisation," says Anand Nayak, Executive Vice President, Corporate HR at ITC, who has spent 38 years at the Kolkatabased firm. People build careers and not institutions. That is today's reality. Companies that can recognise this trend and ride it will be the ones that will be better off. Check our last year survey on Best Employers The phenomenon is not restricted to just youngsters. Keshav Murugesh, Group CEO at WNS, a business process outsourcing company, has now been working for close to 25 years. While HR pundits tell you that your expectations change as you progress in your career, Murugesh, 47, insists that they have not changed for him. He still looks for a high value brand, a learning organisation, a high growth industry, and the opportunity to stand out. Almost all the 20-somethings in the BPO industry will identify with his wish-list. CEO hirings were always a tough ask but it has become even more difficult in recent times. "I feel that the criteria for choosing who you want to work with, why you want to change a job, and even why you stay in a job have changed completely in the past 12 to 18 months," says headhunter R. Suresh. These days the managing director of Stanton Chase, an executive search specialist, gets asked tough questions - often around corporate governance. A potential CFO candidate, recounts Suresh, asked whether the unlisted entity that was

wooing him had cash on its balance sheet and even wanted to take a look at its bank statements. In another instance, there were queries around how a company works on government deals. And, there is always the question of who the boss is. "People want to work with quality leadership," Suresh says. At 47, WNS CEO Keshav Murugesh wants what a 20-something would want from an employer Bosses themselves want to make sure that all risks are counted. Almost all CEO appointments today come with watertight agreements on how they will be taken care of if things do not go according to plan. "Today severance is talked about more than compensation," says Suresh. The preference for Indian companies as favoured employers has gone up substantially in this year's survey (it was limited only to people already employed, not students or those not working). Employees, in other words, prefer to be closer to the power centre rather than work for a unit of a multinational corporation. That explains why in the overall rankings, 16 of the top 25 companies, or 64 per cent, are Indian. Compare this with the profile of the respondents: one-third were from multinationals, 40 per cent from the Indian private sector and 14 per cent from public sector units. Employees, regardless of the sectors they were working in, ranked Infosys and Tata Consultancy Services as the top two companies - the MNC employees ranked Infosys and TCS ahead of Google and IBM (ranked No. 3 and No. 4, respectively). "People want the destiny of their company to be decided by what happens in India and not by the destiny of their parents abroad," says Govind Iyer, Partner, Egon Zehnder India, an executive search firm. So, even companies that have a long history in India are in demand. A case in point: middle-level managers opt for safe and secure options such as Hindustan Unilever Ltd, or HUL. This, says Asim Handa, Country Manager of FutureStep, a Korn/Ferry company, is because during the year-and-a-half-long slowdown companies like HUL stayed steady. Slice the data some more and another employee preference emerges: a strong convergence of corporate and employer brands. Larsen & Toubro, HCL Technologies, ICICI Bank and Accenture are cases in point. Each has risen sharply in our rankings this year. HCL had figured out its "Employee First" mojo much before others. ICICI Bank had built a strong image of executive leadership and diversity. L&T has enjoyed iconic status for decades. "Non-technology people like to work for L&T and so do those in technology," says Shermon. And, what about the corporate brands that may not be strong or even desirable in terms of image? Like Mahindra Satyam that in its earlier avatar Satyam Computer Services almost did not survive? Says Hari Thalapalli, Chief Marketing Officer and Chief People Officer at Mahindra Satyam, "The workforce is far more mature than organisations give them credit for. Only organisations that are capable of catering to the changing aspirations of their employees will survive tomorrow." But do they need to hardsell themselves to potential employees? Hardly. "There is no reminiscence of a crisis at present," says Thalapalli. Mahindra Satyam has been hiring more than 600 employees a month for about six months now. One of them, Rajesh Kataria, 30, is an Assistant General Manager in the sales team at Hyderabad. He joined the company in

May 2010, immediately after completing an executive management programme from IIM Bangalore. He already had seven years of work experience, including six at Accenture in Bangalore. What attracted Kataria to Mahindra Satyam was the fact that he could be a part of its turnaround story. Ramesh Ramakrishnan, left, and Rajesh Kataria, both at Mahindra Satyam. "Since they had lost people, it seems logical that they will give you more responsibilities," Kataria says. Again, an example of an employee knowing where he is headed. The future What are you likely to hear next year? BT went to the Management Development Institute, or MDI, Gurgaon, and asked a group of students from the Class of 2011 this very question. These students will be among the thousands who will be joining the job market in a couple of months. Pallavi Aron, a student at MDI, says her dream company is Procter & Gamble, the personal care products giant. "Not just is it a big brand, it also offers work-life balance," says Aron, 25. This finds resonance in the survey findings where work-life balance emerged as the second most important priority for the respondents after performance appraisal. Godrej, Marico and Airtel are the domestic favourites among students, with TAS, formerly Tata Administrative Services, as the most preferred choice any given day. Neither the telecom spectrum

scandal nor the burning Nanos have changed the perception of students about Tata, it seems. The HR head at IBM India, Chandrasekhar Sripada, sees signs of a maturing job market where employees know exactly what they want and will pursue those goals. "As the labour market matures, we may have a shift in mindset that favours working for an L&T and not an Infosys," he says. That, in fact, has already started to happen. On Fathima, who quit Infosys to join a virtually

unknown company, Sripada says, "For every employee like her, I have two who like scale, processes and brand. In a fair labour market, it all boils down to perception and needs." Why do Employees Leave ? Research says that most of the employees leave an organization out of frustration and constant friction with their superiors or other team members. In some cases low salary, lack of growth prospects and motivation compel an employee to look for a change. The management must try its level best to retain those employees who are really important for the system and are known to be effective contributors. It is the responsibility of the line managers as well as the management to ensure that the employees are satisfied with their roles and responsibilities and the job is offering them a new challenge and learning every day. Let us understand the concept of employee retention with the help of an example: Misha was a talented employee who delivered her best and completed all her work within the desired time frame. Her work lacked errors and was always found to be innovative and thought provoking. She never interfered in anybody elses work and stayed away from unnecessary gossips and rumours. She avoided loitering around at the workplace, was serious about her work and no doubts her performance was always appreciable. Greg, her immediate boss never really liked Misha and considered her as his biggest threat at the workplace. He left no stone unturned to insult and demotivate Misha. Soon, Misha got fed up with Greg and decided to move on. Situation 1 - The HR did not make any efforts to retain Misha and accepted her resignation. Situation 2 - The HR immediately intervened and discussed the several issues which prompted Misha to think for a change. They tried their level best to convince Misha and even appointed a new boss to make the things better for her. Situation 1 would most likely leave the organization in the lurch. It is not easy to find an employee who gels well with the system and understands the work. Hiring an employee, training him and making him fit to work in an organization incur huge costs and thus sincere efforts must be made to retain the employee. Every problem has a solution and the management must probe into the exact reasons of an employees displeasure. Employees sticking to an organization for a longer time tend to know the organization better and develop a feeling of attachment towards it. The employees who stay for a longer duration are familiar with the company policies, guidelines as well as rules and regulations and thus can contribute more effectively than individuals who come and go. Employee retention techniques go a long way in motivating the employees for them to enjoy their work and avoid changing jobs frequently.

Managing Employee Retention The task of managing employees can be understood as a three stage process: 1. Identify cost of employee turnover. 2.Understand why employee leave. 3.Implement retention strategies The organizations should start with identifying the employee turnover rates within aparticular time period and benchmark it with the competitor organizations. This willhelp in assessing the whether the employee retention rates are healthy in the company. Secondly, the cost of employee turnover can be calculated. According to a survey, on an average, attrition costs companies 18 months salary for each manager or professional who leaves, and 6 months pay for each hourly employee who leaves. This amounts to major organizational and financial stress, considering that one out of every three employees plans to leave his or her job in the next two years. . Understand why employees leave :Why employees leave often puzzles top management. Exit way of recording and analyzing the factors that have led employees to leave the organization. They allow an organization to understand the reasons for leaving and underlying issues. However employees never provide appropriate response to the asked questions. So an impartial person should be appointed with whom the employees feel comfortable in expressing their opinions. Implement retention strategy : Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An effective retention strategy will seek to ensure: Attraction and recruitment strategies enable selection of the right candidate for each role/organization New employees initial experiences of the organization are positive Appropriate development opportunities are available to employees, and that they are kept aware of their likely career path with the organization.The organizations reward strategy reflects the employee drivers How To Increase Employee Retention Companies have now realized the importance of retaining their quality workforce. Retaining quality performers contributes to productivity of the organization and increases morale among employees/ Four basic factors that play an important role in increasing employee retention include salary and remuneration, providing recognition, benefits and opportunities for individual growth. But are they really

positively contributing to the retention rates of a company? Basic salary, these days, hardly reduces turnover. Today, employees look beyond the money factor . Retention Bonus Higher attrition rates within a particular industry have forced companies to use some innovative strategies to retain employees. Retention Bonus is one of the important tools that are being used to retain employees. Retention bonus is an incentive paid to an employee to retain them through a critical business cycle. Retention bonuses are becoming more common in the corporate world because companies are going through more transitions like mergers and acquisitions. They need to give key people an attractive incentive to stay on through these transitions to ensure productivity. Retention bonuses have proven to be a useful tool in persuading employees to stay.A retention bonus plan is not a panacea. According to a survey, nonmanagement employees generally receive about 10 percent of their annual salaries in bonuses, while management and top-level supervisors earn an additional 50 percent of their annual salaries. While bonuses based on salary percentages are the generally used, some companies choose to pay a flat figure. In some companies, bonuses range from 25 percent to 50 percent of annual salary, depending on position, tenure and other factors. Employees are chosen for retention bonuses based on their contributions to management and the generation of revenue. Retention bonuses are generally vary from position to position and are paid in one lump sum at the time of termination. However, some companies pay in installments as on when the business cycle completes. A retention period can run somewhere between six months to three years. It can also run for a particular project. A project has its own life span. As long as the project gets completed, the employees who have worked hard on it are entitled to receive the retention bonus. For example, the implementation of a system may take 18 months, so a retention bonus will be offered after 20 months. Although retention bonuses are becoming more common everywhere, some industries are more likely than others to offer them. Retail/wholesale companies are the most appropriate to implement stay-pay bonuses, followed by financial service providers and manufacturing firms. Companies of all sizes use retention bonus plans to keep knowledge employees retained in the company. To retain its key senior employees post merger with EDS Corporation, Mphasis is providing cash component based retention bonus plan for its employees. This is mainly to retain good employees and provide them a cash incentive to keep them motivated. Hire Right Talent

employee retention starts with recruitment. Early departures arise from the wrong recruitment process. Here are a few ways to ensure how to hire the right talent for a particular job. Hire appropriate candidates. Hire candidates who are actually suitable for the job. For this the employer should understand the job requirements clearly. Dont hire under qualified or clearly overqualified candidates. Provide realistic job preview at the time of hiring: Mostly employees leave an Organization because they are given the real picture of their job responsibilities at the time of joining. Attrition rate can be reduced if a right person is hired for a right job.Realistic preview of the job responsibilities can be given to the employment seekers by various methods like discussions, trial periods, internships etc. Clearly discuss what is expected from the employee: Before joining the organization, tell the candidate what is expected from him. Setting wrong expectations or hiding expectations will result in early leaving of employees. Discuss what the expectations of the employees are: Ask employees what they expect from the organization. Be realistic. If their requirements can be fulfilled only then promise them. Or tell them before hand that their requirements can not be fulfilled. Dont show them an unrealistic picture. Culture fit: Try to judge individuals capability to adapt to the organizations culture. A drastic change in the culture may give a culture shock to the candidate. Referrals: According to the research, referred candidates stay longer with the organization. There is a fear of hampering the image and reputation of the person who referred the candidate. Manager Role in Retention When asked about why employees leave, low salary comes out to be a common excuse. However, research has shown that people join companies, but leave because of what their managers do or dont do. It is seen that managers who respect and value employees competency, pay attention to their aspirations, assure challenging work, value the quality of work life and provided chances for learning have loyal and engaged employees. Therefore, managers and team leaders play an active and vital role in employee retention. Managers and team leaders can reduce the attrition levels considerably by creating a motivating team culture and improving the relationships with team members. This can be done in a following way: Creating a Motivating Environment: Team leaders who create motivatingenvironments are likely to keep their team members together for a longer period of time. Retention does not necessarily have to come through fun events such as parties, celebrations, team outings etc. They can also come through serious events e.g. arranging

a talk by the VP of Quality on career opportunities in the field of quality. Employees who look forward to these events and are likely to remain more engaged. Standing up for the Team: Team leaders are closest to their team members. While they need to ensure smooth functioning of their teams by implementing management decisions, they also need to educate their managers about the realities on the ground. When agents see the team leader standing up for them, they will have one more reason to stay in the team. Providing coaching: Everyone wants to be successful in his or her current job. However, not everyone knows how. Therefore, one of the key responsibilities will be providing coaching that is intended to improve the performance of employees. Managers often tend to escape this role by just coaching their employees. However, coaching is followed by monitoring performance and providing feedback on the same. Delegation: Many team leaders and managers feel that they are the only people who can do a particular task or job. Therefore, they do not delegate their jobs as much as they should. Delegation is a great way to develop competencies. Extra Responsibility: Giving extra responsibility to employees is another way to get them engaged with the company. However, just giving the extra responsibility does not help. The manager must spend good time teaching the employees of how to manage responsibilities given to them so that they dont feel over burdened. Focus on future career: Employees are always concerned about their future career. A manager should focus on showing employees his career ladder. If an employee sees that his current job offers a path towards their future career aspirations, then they are likely to stay longer in the company. Therefore, managers should play the role of career counselors as well . How to Improve Employee Retention People want to enjoy their work so make work fun and enjoyable. Understand that employees need to balance life and work so offer flexible starting times and core hours. Provide 360 feedback surveys and other questionnaires to foster open communication. Consider allowing anonymous surveys occasionally so employees will be more honest and candid with their opinions. Provide opportunities within the company for career progression and cross-training. Offer attractive, competitive benefits and 401(k)s. Organizations should target job applications for employees who have characteristics that fit well with the organizational culture. Upon conducting an interview, seek out traits, such as loyalty. Also, ask the potential employee what motivates them on the job. Having more information about the potential employees expectations can help retain them, should they get hired into the company.

Rewards and Recognition Employees want to be recognized for a job well done. Rewards and recognition respond to this need by validating performance and motivating employees toward continuous improvement. Rewarding and recognizing people for performance not only affects the person being recognized, but others in the organization as well. Through a rewards program, the entire organization can experience the commitment to excellence. When the reward system is credible, rewards are meaningful; however, if the reward system is broken, the opposite effect will occur. Employees may feel that their performance is unrecognized and not valued, or that others in the organization are rewarded for the wrong behaviors. Unrecognized and nonvalued performance can contribute to turnover. Recognition for a job well done fills the employees' need to receive positive, honest feedback for their efforts. Need for Rewards and Recognition Recognition should be part of the organization's culture because it contributes to both employee satisfaction and retention. Organizations can avoid employee turnover by rewarding top performers. Rewards are one of the keys to avoiding turnover, especially if they are immediate, appropriate, and personal. A Harvard University study concluded that organizations can avoid the disruption caused by employee turnover by avoiding hiring mistakes and selecting and retaining top performers. One of the keys to avoiding turnover is to make rewards count. Rewards are to be immediate, appropriate, and personal. Organizations may want to evaluate whether getting a bonus at the end of the year is more or less rewarding than getting smaller, more frequent payouts. Additionally, a personal note may mean more than a generic company award. Employees should be asked for input on their most desirable form of recognition. Use what employees say when it comes time to reward for performance (St. Amour, 2000). Designing a Rewards and and Recognition Solution In designing a rewards and recognition program, the following guidelines should be considered. Rewards should be visible to all members of the organization. Rewards should be based on well-defined, credible standards that have been developed using observable achievements. Rewards should have meaning and value for the recipient. Rewards can be based on an event (achieving a designated goal) or based on a time frame (performing well over a specific time period). Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly motivating and should also use a set criteria and standard to maintain credibility and meaning. Rewards should be achievable and not out of reach by employees.

Nonmonetary rewards, if used, should be valued by the individual. For example, an avid camper might be given a 10-day pass to a campsite, or, if an individual enjoys physical activity, that employee might be given a spa membership. The nonmonetary rewards are best received when they are thoughtfully prepared and of highest quality. Professionalism in presenting the reward is also interpreted as worthwhile recognition. Rewards should be appropriate to the level of accomplishment received. A cash award of $50 would be inappropriate for someone who just recommended a process that saved the organization a million dollars. Determining the amount of money given is a delicate matter of organizational debate in which organizational history, financial parameters, and desired results are all factors. Recognition for a job well done can be just as valued and appreciated as monetary awards. Formal recognition program can be used with success. First Data Resources, a data processing services company that employees more than 6,000 individuals in Omaha, Nebraska, uses a formal recognition program (Adams, Mahaffey, and Rick, 2002). Rewards are given on a monthly, quarterly, and yearly basis, and range from Nebraska football tickets, gift certificates, pens, plaques, mugs, and other items. One of the most popular awards at First Data is called the "Fat Cat Award" that consists of: $500 gift check Professional portrait of the employee Appreciation letter from the CEO and senior management E-mails, phone calls, and notes from peers In addition to nonmonetary rewards, employees can be rewarded using money in numerous ways. Cash is a welcome motivator and reward for improving performance, whether at formal meetings or on the spot. Variable bonuses linked to performance are another popular reward strategy. Profit sharing and pay-for-skills are monetary bonus plans that both motivate individuals and improve goal achievement. Small acts of recognition are valuable for employee daily Retention. Sometimes a personal note may mean more than a generic company award. In one survey, employees cited the following as meaningful rewards (Moss, 2000): Employee of the month awards Years of service awards Bonus pay (above and beyond overtime) for weekend work Invitations for technicians to technical shows and other industry events Meaningful and Retentional Rewards What gives meaning to rewards and recognition? What makes them effective? First, rewards and recognition should be based on a clear set of standards, with performance verifiable or observable. The standards for the reward should also be achievable. If the reward is based on an unachievable result, such as a production goal that is beyond employees' power, then those employees will not be motivated. Meaningful rewards and recognition that are achievable have the greatest impact.

Case Studies Employee Retention Best Practices in Keeping and Motivating Employees By LisBeth Claus Ask any CEO of an organization, What keeps you awake at night? and you will get a response that relates to people management issues. a main concern for any organization (whether small or large; private, public or nonprofit) is its capacity to attract, engage, and retain the right people. The problem of retention is compounded by the predicted talent shortage resulting from the upcoming retirement of the baby boomers, the scarcity of talent with relevant work skills for todays jobs, the changing values about work and the high cost of turnover. Research and human resource practices provide us with a number of recommendations to increase employee retention. How Auditing Company X Works with Retaining Valuable Employees : Swedish Case study University essay from Hgskolan i Jnkping/IHH, EMM (Entrepreneurskap, Marknadsfring, Management) Author: Josip Bogic; Elina Armanto; Maja Cassel; [2008] Abstract: Today, neither employees nor employers seem to take for granted that a person will stay with the same firm until retirement. Yet, keeping employees for longer periods is an imp-ortant challenge for firms. One industry where retention is interesting is the auditing industry in Sweden, this because certain requirements are needed to become an auditor. Firstly, the employee needs to have a Swedish university degree, including specific courses within au-diting/accounting. Furthermore, the person needs practical experience for a specific period of time. Due to these statements the challenge of retaining and motivating valuable employees is crucial for the auditing firms, which is why we have chosen to do a case study at Auditing Company X to see how they work with employee retention. We have compared the findings to our chosen theory, which consist of four categories: the hiring process, in-ternal labor market and career, motivation and performance, and finally culture and leader-ship. These four categories are initially based on Leigh Branham?s book: ?Keeping the people who keep you in business: 24 ways to hang on to your most valuable talent? (Bran-ham, 2001).In our conducted case study, at Auditing Company X, we have been able to conclude that the firms retention practices are to a great extend in line with the theoretical framework. There are some areas that need further attention from the company, such as an individualized reward system and communication between managers and employees. Even

though there are some parts to work on the most important aspects of retention, such as having a holistic and long-term orientation, Auditing Company X seems to have incorporated this into their practices successfully. Retention: An explanatory study of Swedish employees in the financial sector regarding leadership style, remuneration and elements towards job satisfaction University essay from Vxj universitet/Ekonomihgskolan Author: Sanna Paulsson; Linda Lindgren; [2008] Abstract: Introduction: Companies today are forced to function in a world full of change and complexity, and it is more important than ever to have the right employees in order to survive the surrounding competition. It is a fact that a too high turnover rate affects companies in a negative way and retention strategies should therefore be high on the agenda. When looking at this problem area we found that there may be actions and tools that companies could use to come to terms with this problem. Research told us that leadership, remuneration and elements like participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere is important for job satisfaction and retention. Object: The main objective is to increase the understanding regarding employees retention in relation to leadership style, remuneration and elements such as participation, feedback, autonomy, fairness, responsibility, development and workatmosphere in the Swedish financial Sector. Method: We wanted to investigate how employee of the Swedish financial sector prefers to be retained, and how they consider and react to the chosen areas. The survey has a quantitative approach with a web based questionnaire and includes 129 respondents from banks, insurance and finance companies. The theoretical framework includes leadership and leadership style, financial as well as non-financial remuneration and research done in later years regarding participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere connected to retention. Conclusion: The result shows that regarding leadership the respondents prefer leadership based on relations were they feel appreciation. Both appreciations from the closest manager as well as the company management influences employee job satisfaction in a positive way. More money was the most common reason for wanting to change jobs, and when asking how the remuneration system should be designed, base pay with additional bonus and benefits were preferred. But also non financial factors such as participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere must be taken in consideration to satisfy since they seem to increase employees? Willingness to stay in the company. What leaders can do to keep their key employees - Retention Management University essay from Gteborgs universitet/Fretagsekonomiska institutionen

Author: Lisa Hedberg; Maria Helnius; [2007-09-03T08:22:31Z] Abstract: Background: retention management is a highly topical subject and an important dilemma many organizations might face in the future, if not facing it already. We believe that the leader plays a key role in employee retention and retention management. The concept of retention management can both have a narrow, and a broader significance. Both parts of its significance are generally included in this thesis. The background of the thesis present a few articles that discuss issues that makes it important for the organization, and the leaders, to work hard with retention management. The research is based on the leaders in the Finnish case company Tradeka. Following key questions are intended to be answered: What are the consequences between leaders actions and employees retention? Which is the leaders role when it comes to retaining employees? Purpose statement: The purpose of the thesis is to investigate and analyze how company leaders today can retain their key employees. How can the provision of key human resources develop a long-term relationship that makes top employees stay in the company? The study aims to establish the procedure leaders apply to retain employees. The purpose is to compare the qualitative study, made at the case company, with findings from the thesis theoretical framework. Research method: The study is a qualitative, as well as a theoretical study where empirical findings and theories has been compared. The intention of investigating and using the Finnish company Tradeka Limited as a case company, is to make the information from the theories more valid, and also the interest in how retention management works in practice. Eleven qualitative interviews were conducted at Tradekas financial department, both with supervisors and employees to get a broader view at the phenomenon retention management. Result: Leaders and their skill in creating a culture of retention, has becoming a key in why people stay and what usually drives them away from a company. The leader has become the main factor in what motivates peoples decision to stay or leave. For organizations to keep its key employees their number one priority should be to look at their management, because people leave managers and not companies. Characteristics in a leader that are of importance, as the leader plays a key role in retention management is: trust builder, esteem builder, communicator, talent developer and coach, and talent finder. The leaders relation to the employees plays a central role in retaining employees, because employees need to feel involvement, and that their presence count. When retention is a core value, good things happen for customers, employees, and the company. because employees need to feel involvement, and that their presence count. When retention is a core value, good things happen for customers, employees, and the company. FINDINGS

 It is found out that, 40% of respondents are aware of HR Policies and 60 % of respondents are not aware of HR Policies. It is found out that, 76% of respondents are getting right amount of accurate information at right time and 24% of respondents are not getting right amount of accurate information at right time. It is found out that, 82% of respondents are able to meet superiors expectation and 18% respondents are not able to meet superiors expectation. It is found out that,57% of respondents feels that there pay is on par with compare to employees handling similar responsibilities, and 39% of respondents feels that there pay is less with compare to employees handling similar responsibilities. It is found out that, 70% of respondents are satisfied with hygiene and cleanliness of company infrastructure and 30% of respondents are not satisfied with hygiene and cleanliness of company infrastructure. It is found out that, 40% of respondents are satisfied with Availability of system, storage facilities of company and 60% of respondents are not satisfied with Availability of system, storage facilities of company. It is found out that, 78% of respondents skills are recognized by superiors and 22% of respondents skills are not recognized by superiors. It is found out that, 74% of respondents feel that superiors are taking efforts to motivate them and 26% of respondents feel that superiors are not taking efforts to motivate them. It is found out that, 83% of respondents feel that workload is manageable and 10% of respondents feel that workload is very hard to manage. It is found out that,55% of respondents feels that the field worker are able to get updates on internal activities, and 45% of respondents feels that the field worker are not able to get updates on internal activities. It is found out that, 89% of respondents feel that the superiors are easily accessible and 11% of respondents feel that the superiors are not easily accessible. It is found out that, 51% of respondents feel that their complaints are resolved quickly and 49% of respondents feel that their complaints are not resolved quickly. From weighted Average analysis it is found that most of the respondents are satisfied with the working hours of the organization From weighted Average analysis it is found that roles & responsibilities are clearly defined by the Reporting heads. From weighted Average analysis it is found that employees feel that their superior's commitment towards job is good. From weighted Average analysis it is found that respondents feel that training and orientation programs are neither good nor bad.

Research Methodology Research Design refers to "framework or plan for a study that guides the collection and analysis of data". A typical research design of a company basically tries to resolve the following issues: a) Determining Data Collection Design b) Determining Data Methods c) Determining Data Sources d) Determining Primary Data Collection Methods e) Developing Questionnaires f) Determining Sampling Plan (1) Explorative Research Design: Explorative studies are undertaken with a view to know more about the problem. These studies help in a proper definition of the problem, and development of specific hypothesis is to be tested later by more conclusive research designs. Its basic purpose is to identify factors underlying a problem and to determine which one of them need to be further researched by using rigorous conclusive research designs. (2) Conclusive Research Design: Conclusive Research Studies are more formal in nature and are conducted with a view to eliciting more precise information for purpose of making marketing decisions. These studies can be either: a) Descriptive or b) Experimental Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive. . DATA COLLECTION: Data collection is a term used to describe a process of preparing and collecting data - for example as part of a process improvement or similar project. The purpose of data collection is to obtain information to keep on record, to make decisions about important issues, to pass information on to others. Primarily, data is collected to provide information regarding a specific topic.[1]

Data collection usually takes place early on in an improvement project, and is often formalised through a data collection plan[2] which often contains the following activity. 1. Pre collection activity Agree goals, target data, definitions, methods 2. Collection data collection 3. Present Findings usually involves some form of sorting[3] analysis and/or presentation. Prior to any data collection, pre-collection activity is one of the most crucial steps in the process. It is often discovered too late that the value of their interview information is discounted as a consequence of poor sampling of both questions and informants and poor elicitation techniques.[4] After pre-collection activity is fully completed, data collection in the field, whether by interviewing or other methods, can be carried out in a structured, systematic and scientific way. A formal data collection process is necessary as it ensures that data gathered is both defined and accurate and that subsequent decisions based on arguments embodied in the findings are valid.[5] The process provides both a baseline from which to measure from and in certain cases a target on what to improve. Other main types of collection include census, sample survey, and administrative by-product and each with their respective advantages and disadvantages. A census refers to data collection about everyone or everything in a group or population and has advantages, such as accuracy and detail and disadvantages, such as cost and time. A sample survey is a data collection method that includes only part of the total population and has advantages, such as cost and time and disadvantages, such as accuracy and detail. Administrative by-product data is collected as a byproduct of an organization's day-to-day operations and has advantages, such as accuracy, time simplicity and disadvantages, such as no flexibility and lack of contro

Data Sources: Secondary data

Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research. Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases that would be unfeasible for any individual researcher to collect on their own. In addition, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments

Secondary Data through Books Websites

Research papers

SUGGESTIONS Employee should be provided with proper training. Employee should be appreciated for good work. Employee should be motivated to welcome the change. If any changes are brought in to software or any module is added then proper training should be given. Employees requirements should be fulfilled according to the level he works in-

Conclusion Retention is an important concept that has been receiving considerable attention from academicians, researchers and practicing HR managers. In its essence, Retention comprises important elements such as the need or content, search and choice of strategies, goal-directed behavior, social comparison of rewards reinforcement, and performance-satisfaction. The increasing attention paid towards Retention is justified because of several reasons. Motivated employees come out

with new ways of doing jobs. They are quality oriented. They are more productive. Any technology needs motivated employees to adopt it successfully. Several approaches to Retention are available. Early theories are too simplistic in their approach towards Retention. For example, advocates of scientific Management believe that money is the motivating factor. The Human Relations Movement posits that social contacts will motivate workers. Mere knowledge about the theories of Retention will not help manager their subordinates. They need to have certain techniques that help them change the behavior of employees.One such technique is reward. Reward, particularly money, is a motivator according to need-based and process theories of Retention. For the behavioral scientists, however, money is not important as a motivator. Whatever may be the arguments, it can be stated that money can influence some people in certain circumstance. Being an outgrowth of Herzbergs, two factor theory of Retention, job enrichment is considered to be a powerful motivator. An enriched job has added responsibilities. The makes the job interesting and rewarding. Job enlargement refers to adding a few more task elements horizontally. Task variety helps motivate job holders. Job rotation involves shifting an incumbent from one job to another. Recommendations 1. Develop an attractive employee value proposition. An employee value proposition means that your company has something attractive to offer that is perceived as valuable to an employee. as an employer, you must understand what makes your organization attractive to potential recruits and current employees. Branding yourself as an employer of choice is not just a slick set of marketing tactics. The best advocates for an employers brand are its current employees. What messages do they send to others about their employer? Are they honestly saying and believing that, This is a great place to work. 2. Create a total reward structure that includes more than compensation. Every company should have all the normal compensation mechanisms common to their type of employment. yet, total rewards packages go far beyond money. While money might temporarily retain employees, it does not always equate with engagement. People want a chance to make a difference and realize themselves. That self-realization is multi-dimensional and different for each employee. The total reward structure should include, in addition to compensation, support for employees to attain their personal objectives aligned with the goals of their organization. 3. Give feedback on employee performance on a regular basis. Most managers and employees are not enamored with the performance appraisal process in their organization. yet, an effective performance management process

serves many purposes. Ongoing performance feedback allows employees to better know where they stand, gives them a formal means to provide input, indicates that their managers pay attention to them and that their performance matters. This feedback contributes to employee engagement and retention. 4. Be flexible in terms of work-life balance. Workers more and more value a balance between work and life. They want more flexible ways to engage with their employer. To attract and retain workers with different work and career expectations, organizations have to be more flexible in structuring work and its expectations. It calls for a different managerial mindset and practices that involve letting go of old ways of controlling workers time and attendance in favor of result criteria such as output, productivity and quality. 5. Create a culture of engagement .Employees have become more connected with others in the organization (and the broader supplyand-customer chain) through project-based team work and process management activities. Employees are shifting their loyalty to people, teams and projects and away from company loyalty. It is organizations that create the culture and climate that allow people, processes and projects to become fully connected and engaged with one another. Engaged employees are more likely to stay with their employer. 6. Train managers to be effective. Exit interviews consistently show that poor and bad management practices greatly contribute to an employees decision to leave a company. It is imperative to provide supervisors and managers with adequate tools to become effective managers since we cannot assume that these competencies are innate. Professor Patrick Connor, recently retired after teaching 25 years at the kinson Graduate school of Management, is famous among MBA students and alumni for his Connorisms. He told them, your employees do not work for you, they work for themselves. When I teach my students about managing organizations, I have them reflect on what really matters to employees and what they are constantly asking of their managers and their organizations. In the end, what employees expect of their managers is fairly simple: Can I trust you? are you committed to excellence? Do you care about me? What people constantly ask of their organization is: Do you tell the truth? Do you keep promises? Do you act fairly? Do you respect me? Managers and organizations that keep these questions in mind will have a competitive advantage over others in retaining their employees.

BIBLIOGRAPHY BOOKS Human Resource Management C.B.Memoria Research methodology C.R.Kothari Journals, Newspaper and Interne