Log in with Facebook Log in with Google. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free DOC. Download Free PDF. Neha Sharma. A short summary of this paper. Kranti Walia. The matter embodied in this project work has not been submitted earlier for award of any degree to the best of my knowledge and belief.
This is actually a teamwork done by many people including research guide, parents and my brother. So before presenting the work I would like to serve my sincere regards and thanks to these people. I would like to give special thanks to Dr. Kranti Walia for constant guidance and encouragement throughout. With special regards I sincerely submit my heartiest devotion to my parent and friends who provided me with the time, support and inspiration which are very much needed to prepare this report.
Introduction 2 2. Plan Of The Study 30 3. Research Methodology 33 4. Limitations Of The Study 35 5. Data Analysis And Interpretation 36 6. Findings 52 7. Suggestions 56 8. Recommendations 58 9. Conclusion 60 Questionnaire 63 Employee retention is beneficial for the organization as well as the employee.
Employees today are different. 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. 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 harbouring bright new ideas for its growth Blog Online And Earn Money.
The terms "human resource management" and "human resources" HR have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource Management is evolving rapidly. Human Resource Management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce.
The Human Resources Management HRM function includes a variety of activities and key among them is deciding what staffing needs exist and whether to use independent contractors or hire employees to fulfill these needs; recruit and train the best employees, ensure they are high performers; dealing with performance issues; and ensuring the personnel and management practices conform to various regulations.
Activities also include managing the approach to employee benefits and compensation, employee records and personnel policies. Usually, small businesses for profit or non-profit have to carry out these activities themselves because they cannot yet afford part or full-time help.
However, they should always ensure that employees have and are aware of — personnel policies which conform to current regulations. These policies are often in the form of employee manuals which all employees must have. HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity — so that they can be understood and undertaken by the workforce — and to provide the resources needed for them to successfully accomplish their assignments.
As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations. Many years ago, large organizations looked to the "Personnel Department" mostly to manage the paperwork around hiring and paying people. More recently, organizations have begun to consider the "HR Department" as playing a major role in staffing, training, and helping manage people so that the people and the organization are performing at maximum capability in a highly fulfilling manner.
A strong retention strategy, therefore, becomes a powerful recruitment tool. Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining the best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning, and deeply embedded organizational knowledge and learning.
Employee retention matters as organizational issues such as training time and investment, lost knowledge, insecure employees, and a costly candidate search are involved. Hence, failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times his salary.
Intelligent employers always realize the importance of retaining the best talent. Retaining talent has never been so important in the Indian scenario; however, things have changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the business, or even for the second or third best.
Retention of key employees and treating attrition troubles has never been so important to companies. In an intensely competitive environment where HR managers are poaching from each other, organizations can either hold on to their employees tight or lose them to competition. Now, opportunities are abound. In fact, some reports suggest that attrition levels in IT companies are as high as 40 percent. Though BPO industry shoots ahead at 40 to 50 percent a year, it is now losing 35 to 40percent of its ,odd employees as well.
Clearly, the only way out is to develop appropriate effective retention strategies. Employee turnover is one of the largest though widely unknown costs an organization faces. Now that so much is being done by organizations to retain its employees. Why is retention so important? Is it just to reduce the turn over costs?
Well, the answer is a definite no. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Retention is the key concern of most leading organizations especially in service industry, which is a people intensive industry.
Retention is a complex construct, not just one variable and it is affected by several factors, among which are: job satisfaction, work overload etc. The reasons for people staying in an organization are multidimensional and lie in culmination of a host of social, psychological and organizational factors. In developing countries, due to general influence, compensation is crucial but it not the only critical retention factor.
Reasons for staying are seen as the simple obverse of reasons for leaving. But that is just oversimplification of facts. Factors making employees stay is very often different from what make them leave. Mitchel et al. Employees from different industry or department or level have different needs. One cannot expect that one single strategy can make them all stay. Thus to create an environment where all want to stay employer has to keep their individual needs in their mind.
Hence, management need to identify and apply appropriate variables that will create job satisfaction. Training: Training is referred to as a planned effort to facilitate the learning of job-related knowledge, skills and behavior by employee.
Employers who make an effort to train employee, which is crucial for their personal and career growth, is appreciated by employees. Hence, they tend to stay in the organization. Reward: When an employee receive fair reward for their contribution towards organization, they tend to stay.
Supervisory Support: Supportive supervisor helps an employee not only to achieve individual target but smooth relationship between them enhance the chances of employees stay in the organization. However, competitive market and qualified workforce has been demanding much more than basic requirements. Thus to develop an effective retention strategy organizations some add on have been made such as participatory decision making, work flexibility to offer employees work-life balance, career growth and the like.
Conclusion Employee retention means many things to many people in each organization. In simple language,it means stopping good employee from leaving the organization. Infact , the concept of employee retention arose in response to increasing number of employees leaving the organizations due to various on-the-job or off-the-job reasons.
Some of the turnover is avoidable, whereas some are unavoidable. Realizing the importance of vital human capital in the organization, the only source could not be duplicated by a competitor, all the efforts have to be made to give delay avoidable turnover as long as possible.
Some organizations have introduced measures like six month notice to be given by the employee, or salary in lieu thereof. These are shortsighted methods. Whereas, the approach should be to allow the employee to go if he wants to go and waive off the notice period. Since an outgoing employee can never give his best to the organization. Thus efforts are not to be made only to make employees stay but to make them want to stay to get best results.
Optimal and dysfunctional turnover: Toward an organizational level model. Academy of Management Journal, 9, — Click here to sign up. Download Free PDF. Dr Amit B Dutta. A short summary of this paper.
Organisation culture, pay and remuneration, flexibility and job satisfaction highly influence the retention rate for any company. The paper provides the prevalent and potential reasons for an employee to leave his job and also talks extensively about the problems faced by an organisation associated with the high employee turnover. The paper elaborates on the retention factors such as training, skill recognition, career development, etc and helps in understanding the importance of effective communication and employee motivation for the cause of employee retention.
All the time, and sometimes money spent developing a relationship and sharing business strategies with a very important person you trusted went out of the window. It are often recalled how you felt about the organization, represented by your client.
Their reputation becomes undependable, you lose faith in their business practices and you probably lose interest in operating with them. If you feel so about other corporations, then your clients will feel the same about yours and hence comes the concept of employee retention. Employee retention problems are emerging as the most critical workforce management challenges of the immediate future.
Reaches have shown that in future, triumphant organizations will be those which adapt their organizational behaviour to the realities of the current work environment where longevity and success depend upon innovation, creativity and flexibility.
Retention is a complex concept and there's no single formula for keeping employees with an organization. Increasing numbers of organization mergers and acquisitions have left employees feeling displeased with the companies that they work and haunted by concerns of overall job security. As a result, strategic career moves are taken by employees to guarantee and satisfy their need for security. In a piece of evidence, employee development programs offered by companies are successfully retaining employees Logan, Potential Reasons for an Employee to Leave a Job Key employee retention is critical to the long term health and success of company.
Retention starts at the top. Getting and retaining good employees demands focussed, recognized and comfortable policies and procedures that make retention a prime management outcome. Employers, including tax-exempt organizations, are eligible for the credit if they operate a trade or business during calendar year and experience either:. The credit applies to qualified wages including certain health plan expenses paid during this period or any calendar quarter in which operations were suspended.
These employers can only count wages up to the amount that the employee would have been paid for working an equivalent duration during the 30 days immediately preceding the period of economic hardship. An eligible employer's ability to claim the Employee Retention Credit is impacted by other credit and relief provisions as follows:.
In order to claim the new Employee Retention Credit, eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns, which will be Form for most employers, beginning with the second quarter.
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