A

Dissertation Report ON
EMPLOYEES RETENTION IN
Tech Unified Limited & Biral Soft Limited
Submitted to: Kurukshetra University, Kurukshetra in partial fulfillment for the degree of Master of Business Administration (Session 2009-2011)

UNDER THE SUPERVISION OF: Mrs BHAWNA SAREEN LECT. MBA GNIM MULLANA

SUBMITTED BY: SHWETA RANI MBA 2nd YAER ROLL NO

GURU NANAK INSTITUTE OF MANAGEMENT MULLANA (AMBALA)

Student Declaration

I, SHWETA RANI, hereby declare that the project report entitled EMPLOYEES RETENTION IN SELECTED COMPANIES for the partial fulfillment of MBA degree under Kurukshetra University, Kurukshetra, is original work done by me and data provided in the study is authentic to the best of my knowledge and belief.

ACKNOWLEDGEMENT

Gratitude is the hardest of emotions to express and one often does not find adequate words to convey what one feels, and trying to express it.

The present project file is an amalgamated of various thoughts and experiences. The successful completion of this project report would have not been possible without the help and guidance of number of people. I take this opportunity to thank all those who have directly and indirectly inspired, directed and helped me towards successful completion of this project report. I am also immensely indebted to my project guide, Mrs,Bhawna Sareen Lecturer, GNIM, Mullana, Ambala for his illumining observation, encouraging suggestions and constructive criticisms, which have helped me in completing this research project successfully. There are several other people who also deserve much more than a mere acknowledgement at their exemplary help. I also acknowledge with deep sense of gratitude and wholehearted help and cooperation intended to me by them.

CERTIFICATE
This is to certify that Ms. Shweta Rani has completed the research project entitled Employees Retention In Selected

Companies under my supervision in the partial fulfillment of the degree MASTER OF BUSINESS ADMINISTRATION of Kurukshetra University, Kurukshetra. To the best of my knowledge, the report consists of result of an empirical study conducted by my student. In my opinion, the work is of the requisite standard expected of MBA student.

This is further certified that Ms. Shweta Rani is a bonafied student of MBA of GNIM, MULLANA, Ambala.

Mrs. BHAWNA SARREN, Lecturer, GNIM, MULLANA

INDEX OF CONTENTS

Chapter No.

Title Acknowledgement Certificate Student Declaration

PAGE NO

Chapter-1 Chapter-2 Chapter-3 Chapter-4 Chapter-5

Industry Profile Introduction of the topic Objective of study Literature Review Research Methodology a. Research Design b. Sampling & Sample Design c. Data Collection d. Analytical Tools e. Limitations of Study

1-11 12-19 21 22-24 25-28

Chapter-6 Chapter-7 Chapter-8 Chapter-9 Chapter-10

Analysis and Interpretation Findings Recommendations Conclusion Bibliography Annexure (s)

30-45 46 47 48

INTRODUCTION TO THE STUDY

INTRODUCTION TO ATTRITION AND RETENTION RATE

High performers are like frogs in a wheelbarrowThey can jump out at any time
-Mc Kinsey & Company Study . Genius begins and labor finishes is an old saying that would be profoundly significant if interpreted in the context of corporates and large employers. Concepts, visions and decisions do take shape within the four walls of corporate boardrooms. However, it is only the employees that implement and give tangibility to the corporates mission. In other words if it is the highest rung in the corporate hierarchy that has ideas, it is the employees rung that has the chisel to bring the vision to life.

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

But then theres the real world. And in the real world, employees, do, leave, either because they want more money, hate the working conditions, hate their co-workers, want a change, or because their spouse gets a dream

job in another state. Unlike inanimate products and systems that subject themselves to fine tuning without any reaction, employees would not subject themselves to any measure taken without reaction and analysis. Hence managing human resources, particularly retaining them, is an art that calls for special skills and strategies.

Defining Attrition: A reduction in the number of employees through retirement, resignation or death

Defining Attrition Rate: The rate of shrinkage in size or number. It is however no easy task for an HR manager to bridge the everincreasing demand and supply gap of professionals. Unlike the HR manager is not only required to fulfill this responsibility but also find the right kind of people who can keep pace with the unique work patterns in the industry. Adding to this is the issue of maintaining consistency in performance and keeping the motivation level high, despite the monotonous work. The toughest concern for an HR manager is however high attrition rate. The intangible, complex psychology factor has to be handled with a velvet glove as it eventually leads to a polarization of total human resources into two species, namely, the loyals who are prepared to stick to the employer and the rolling stones that are poised to roll out for a variety of reasons. This phenomenon relating to latter class of employees, i.e., attrition, has highlighted the urgent necessity for the formulation of suitable strategies aimed at stemming the xodus and retaining the employees by instilling in them a general sense of loyalty. The prerequisite or the steps taken to control the phenomenon is to ascertain the actual reasons for the departure of an employee. Naturally, the first question that crops ups in the

minds of HR analysts is what exactly are the reasons that prompt an employee to seek the exit door. At the same time, it is not an easy task to ascertain the real reason for departure from the employee. Firstly, the reply given by the employee may not reflect the true cause. Secondly, the reply, coming as it does almost in the end, is too late to serve any useful purpose. However, the HR analysts, following the axiom better late than never, feel that it may be useful to know the reasons for the exit of any employee, so that it would form a major element in the HR policies of the employer. Some of the reasons why employees leave an employer are:

        

Job content Level of responsibility Company culture Caliber of colleagues Salary Low growth potential Lack of challenge Lack of autonomy Work environment issues etc.

Also some of the employees feel that the good work turned out by them got unappreciated. A circumstance. Quoted as painful in many of the exit interviews is the unfortunate necessity of working with a boss who has no value equity, and who practices prejudice and nepotism in the treatment of employees.

Most Common Reasons Employees Voluntarily Leave

4% 5% 8% Reasons for leave 10% 10% 14% 1 15% 18% 21%
65%

78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Percentage citing
Career opporyunities elsewhere poor management returning to school Job security fears Child care issue Health-related Reasons Better compensation/Benefits Package Relocation Spouse/Partner retirement Poor relationship withco-workers Perceptions of Discriminatory Treatment

(Source: Based on 2000 SHRM Retention Practices Survey)

While the knowledge of these reasons will always be useful to the HR team in formulating suitable HR policies, the cost factor involved in the replacement procedure requires full attention. To be effective, any employee retention policy that may be formulated by an employer should invariability involved measure also aimed at controlling the cost of

employee turnover, i.e., the cost of filling up vacant seats through a careful, well thought out recruitment process. In other words, the retention policy should contain solutions aimed not only at neutralizing the reasons for an employees exit, but also at reducing the cost of employee turnover, at least at the skilled or trained level of employees.

Attrition rate means:  In terms of numbers: Total number of resigns per month (whether voluntary or forced) divided by (Total Number of employees at the beginning or the month plus total number of new joinees minus total number of resignations) multiplied by 100. Attrition rates: US 42%

 
 

Australia 29% Europe 24%

India 18% Global Average 24%

* Source-Times News New York

 1.

If calculating in monetary terms, it includes the following:

Costs Due to a Person Leaving Calculate the cost of the person(s) who fills in while the position is vacant. Calculate the cost of lost productivity at a minimum of 50% of the persons compensation and benefits cost for each week the position is vacant, even if there are people performing the work.

Calculate the lost productivity at 100% if the position is completely vacant for any period of time. 2. Calculate the cost of conducting the exit interview to include the time of the person conducting the interview, the time of the person leaving, the administrative costs of stopping payroll, benefit deductions, benefit enrollments. 3. Calculate the cost of the manager who has to understand what work remains, and how to cover that work until a replacement is found. 4. Calculate the cost of training your company has invested in this employee who is leaving. 5. Calculate the impact of departmental productivity because the person is leaving. Who will pick up the work, whose work will suffer, what departmental deadlines will not be met or delivered late. 6. Calculate the cost of lost knowledge, skills and contacts that the person who is leaving is taking with them out of your door. Use a formula 50& of the persons annual salary for one year of service, increasing each year of service by 10%. 7. Subtract the cost of the person who is leaving for the amount of time the position is vacant.

Recruitment costs 1. The cost of advertisements; agency costs; employee costs; Internet posting costs. 2. The cost of internal recruiters time to understand the position

requirements, develop and implement a sourcing strategy, review candidates backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer and

notify unsuccessful candidates. This can range from a minimum of 30 hours to over 100 hours per position. 3. Calculate the cost of the various candidate pre-employment tests to

help assess candidates skills, abilities, aptitude, attitude, values and behaviors.

Training costs 1. Calculate the cost of orientation in terms of the new persons salary

and the cost of the person who conducts the orientation. Also include the cost of orientation materials. 2. Calculate the cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. Note that the cost will be significantly higher for some positions such as sales representatives and call center agents who require 4-6 weeks or more of classroom training. 3. 4. Calculate the cost of the person(s) who conduct the training. Calculate the cost of various training materials needed including company or product manuals, computer or other technology equipment used in the delivery of training.

Lost productivity costs As the new employee is learning the new job, the company policies and practices, etc. They are not fully productive. Use the following guidelines to calculate the cost of this lost productivity: 1. Upon completion of whatever training is provided, the employee is

contributing at a 25% productivity level for the first 2-4 weeks. The cost therefore is 75% of the new employees full salary during that time period.

2.

During weeks 5-12, the employee is contributing at a 50%

productivity level. The cost is therefore 50% of full salary during that time period. 3. During weeks 13-20, the employee is contributing at a 75%

productivity level. The cost is therefore 25% of full salary during that time period. 4. Calculate the cost of mistakes the new employee makes during this

elongated indoctrination period.

New Hire Costs 1. Calculate the cost of bring the new person on board including the cost

to put the person on the payroll, establish computer and security passwords and identification cards, telephone hookups, cost of establishing email accounts, or leasing other equipment such as cell phones, automobiles. 2. Calculate the cost of a managers time spent developing trust and

building confidence in the new employees work.

Lost Sales Costs 1. Calculate the revenue per employee by dividing total company

revenue by the average number of employees in a given year. Whether an employee contributes directly or indirectly to the generation of revenue, their purpose is to provide some defines set of responsibilities that are necessary to the generation of revenue. Calculate the lost revenue by multiplying the number of weeks the position is vacant by the average weekly revenue per employee.

The cost of attrition is: (Total staff * attrition rate %) * (annual salary * 80%) The rule of thumb appears to be very inaccurate indeed and, while it depends upon the category of staff, it is probably better to estimate around 80% of salary as a truer rule of thumb- and this will be on the conservative side. What kind of strategies would be effective in producing the desired results of maximum Employee Retention and minimum Employee Turnover? The answer is obvious. It should be the aim of each employee to keep his work force fully satisfied with no room for disgruntlement. Retention of employees has become a primary concern in many organizations foe several reasons. As a practical matter, with lower turnover, every individual who is retained means one less person to have to recruit, selects, and trains. Also, the continuity employees who know their job, coworkers, organizational services and products and firms customers enhance organizational and individual performance. One survey of supervisor and workers found that losing high performance made it more difficult for organizations to reach their business goals. Additional continuity of employees provides better Employee image for attracting and retaining other individuals.

Retention Determinants It has been recognized by both employers and employees that some common areas affect employee retention. If certain organizational components are being provided, than other factors may affect retention. Surveys of employees consistently show that better compensation package and better career opportunity are the two most important determinates of

retention. Finally, job design and fair and supportive employee relationship with others inside the organization contribute to retention. Following are the components that affect employee retention: Career opportunities  Training Continuity.  Development & Mentoring.  Career planning.

Rewards  Competitive pay & benefits.  Performance reward differentiation.  Recognition.  Special benefit & perks.

Organizational Components  Values and Culture.  Strategies & Opportunities.  Well managed & results-oriented.  Job continuity & security.

Job design & work  Job responsibility & autonomy.  Work flexibility.  Working conditions.  Work/Life balancing. Employee Relationship  Fair/nondiscriminatory treatment.  Supervisory/management support.  Co-Workers relations.

These were the determinants of retention. An affective leadership assumed by the top management would be a very important feature that keeps the work force intact and loyal. In fact, the approach to the task of formulation of strategies for employee retention should be comprehensive and the honest intention of the employer to implement every stipulation in

the package of appointment should be evident. However, there would, in each employing corporate, be a section of so-called good employees, whom it would be unwise to loose. Special strategies and special kind of efforts are required in the task of retaining them. Probably it would be the hardest task for the employer to retain them as persons and rivals would be making relentless bids to woo this section of employees. To counter these onslaughts from peers, special efforts are called for.

INDUSTRY PROFILE
Over the past decade, the Information Technology (IT) industry has become one of the fastest growing industries in India, propelled by exports (the industry accounted for more than a quarter of Indias services exports in 2004-05). The key segments that have contributed significantly (96 percent of total) to the industrys exports include Software and services (IT services) and IT-enabled services (ITeS) i.e. business services. Over a period of time, India has established itself as a preferred global sourcing base in these segments and they are expected to continue to fuel growth in the future. These segments have been evolving over the years into a sophisticated model of operations. Indian IT and ITES companies have created global delivery models (onsite-near shore-offshore), entered into long term engagements with customers, expanded their portfolio of services offerings, built scale, extended service propositions beyond cost savings to quality and innovation, evolved their pricing models and have tried to find sustainable solutions to various issues such as risk management, human capital attraction and retention and cost management. India has emerged as the fastest growing IT hub in the world, its growth dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, IS Outsourcing, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services.

When it comes to IT services, the world is coming to India. With a CAGR of 28 per cent during the last 5 years, the IT-ITeS industry's contribution to India's GDP is expected to rise to 7 per cent by 2007-08 against 4.8 per cent in 2005-06.

The contribution of the IT industry to the country's economy has been captured in a Nasscom-Crisil report titled 'The Rising Tide - Output and Employment Linkages of IT-ITeS'. It says: Every rupee spent by the IT-ITeS sector (on domestically-sourced goods and services) translates into a total output of Rs. 2 in the economy. And for every job that is created in this sector, four jobs are created in the rest of the economy.

Expected to generate exports worth US$ 60-75 billion in 2010, the ITITeS sectors will contribute US$ 115 billion to the economy from allied sectors as well. In terms of employment creation, the industry is expected to create about 11 million jobs (directly and indirectly) over the next three years. According to another Nasscom report, India's software and services exports will top US$ 31 billion in the current fiscal year to March and are on track to double that figure by 2010.

The information technology industry has grown its revenues ten-fold in the past decade from US$ 4.8 billion in 1997-98 to US$ 47.8 billion in 2006-07, the report noted.

A key demand driver for the Indian IT services and ITeS industry has been the changing global business landscape, which has exerted performance pressures on multinational enterprises.

TECH UNIFIED
ORG embarks on an impressive expansion programme to companies namely TechUnified (Bangalore) and DGIT (Singapore) in software and consultancy domain respectively.

The journey 1960: ORG group set up by Dr.Vikram Sarabhai to facilitate scientific approach for data collection and information analysis, for optimizing business operations. 1978: ORG systems formed, as a separate entity to service the IT infrastructure needs of industries in India. 1978-80: ORG introduces the 8-bit CPU based desktop computers. 1980-85:Indigenously made multi-user computer systems. 1985-90:Introduce Multi-CPU computer systems in India and first to implement WAN. Introduce of minicomputer-supermax in India market in technical collaboration with Dansk data elektronik a/s (DDE) of Denmark. 1994: Alliance with DDE to form DDE ORG systems Ltd. 2003: Merger of Sarabai Electronics Ltd (SEL) and DDE-ORG to form ORG informatics Ltd (ORG). Global Asia partners, us based venture capital, infuses equity into ORG. Ajoy khandheria, general partner of the fund, becomes the CEO. telecom business line started at ORG. 2004-2006: Org expands its operations to international market with opening of offices in Dhaka, Singapore, US, Tanzania and Kabul.

CARRIERS With technological advances and increasing subscriber base, the Telecom industry is undergoing a paradigm shift. ORG with its rich experience and trained manpower provides the teleco service provider with a partner of choice for serving their immediate and future needs.

The current trend of technology movement is towards all IP networks, which gives ORG an advantage with its focus on converged Telecom & IT space. ORG has the processes and systems in place, to choose products and technologies, which cater to the needs of the service provider.

ORG is a quality certified ISO 9001:2000 organization, having offices in the Indian subcontinent, Middle East Asia, South East Asia &USA and t serves clients in Africa, Australia, Russia, Finland &Czech public though its partners.

OUR APPROACH We specialize in a holistic approach to business change and technology innovation. First, we listen and understand your unique movement before we design, plan, build or run the complex systems: systems you need to achieve market success. Through a powerful blend of management and technical expertise combined with deep industry knowledge, we collaborate with your business and technology leadership teams to design & implement the systems and applications that deliver results for your business.

CUSTOMERS AND PARTNERS

TechUnified has experience working with more than 100 customers worldwide. Our customers represent a wide range of industries, including banking, financial services, technology and telecommunications. TechUnified also works with an extensive but select network of partners and serves many Fortune companies worldwide indirectly. Companies like Reuters, Saudi Fransi Bank and Siemens can attest to the benefits of TechUnified solutions and services.

SERVICES
TechUnified endeavors to provide complete solution to customers. Many times, this means providing services along with software products and applications. Every TechUnified solutions starts with a partnership. Our commitment to our customers business. We place an emphasis on collaboration with our clients throughout the lifecycle of our relationship, from the initial requirements gathering phase to ongoing support and maintenance. Since TechUnified operates in different geographies across the globe, our services are turned to meet the customer requirements in individual markets and tailored to specific customers need. Info Track solutions Pte Ltd. is Singapore based Technology Solutions Company with clear and strong presence in Location based IT Enabled services market. Info Tracks Location Intelligence Solutions consists of the application based on wireless technology, Ingenious

Infrastructure and proven methodologies with the objective of providing unsurpassed location intelligence solutions to our esteemed customers.

Info Track Solutions mission To build strong customer associations by transforming clients IT vision into reality and by partnering with robust, cost efficient and faster solutions. Info Track Solutions is serving the Asia Pacific market, specializing in providing telematics and telemetry solution for vehicle tracking, dispatch and monitoring system. It is a specialist in the supply of low cost, flexible fleet management systems, Automatic Taxi Dispatch Systems and Car Applications. It has many years of experience in the supply of GPRS / wireless and web based solutions and this forms the foundation on which all Info Track products have been developed.

BIRLA SOFT LTD.

Birlasoft provides software application development and support services across the globe in both onshore and offshore models. Its clients include large Fortune-listed companies in Manufacturing, Retail, Banking and Finance, Insurance, Mortgage, Healthcare and Independent software vendors etc. Birlasoft is a part of the Global $ 1.2 Billion CK Birla Group, one of India's premier commercial and industrial houses, with strategic equity participation by GE Capital. Birlasoft offers IT services worldwide from development centers in India and Australia. Birlasoft has 4,600+ technical employees and a large number of clients among Fortune 1000 companies. The company provides application development and support services in eCommerce, Data Warehousing, Legacy Systems, QA, CRM, RIMS (Remote Infrastructure Management Service) and ERP. Birlasofts key strengths as an offshore outsourcing partner lie in its mature and robust global delivery model that embraces Digitized Project Management Methodologies, embedded within proven practices of Six Sigma, SEI CMMI Level 5 on Continuous Representation and a secure services framework with BS7799. Earning the trust of its customers and being honored with their repeat business, is what we strive for each day. Birlasoft is uniquely positioned to create value and provide a competitive advantage to our customers.

Real World Experience Leveraging our experience, we help clients exploit the latest innovations in technology and efficiently scale their businesses to meet the challenges of the new economy. We have a reputation for delivering projects on budget, on time and exceeding the clients expectations.

Process & Technology Innovation As an Off Sourcing partner, we offer our clients process and technology innovations, mapping industry best practices to Birlasoft's internal QMS, a client-transparent web-based project management system and a Six-Sigma driven VOC (Voice of Customer) based engagement model.

A Continuing Commitment to Quality Process maturity is the key to ensuring predictability of software solutions. The higher the maturity, the more reliable the company to provide quality solutions on time and within budget. Birlasoft has adopted the Six Sigma practice across the organization. Everything works in synchronization to support and further validate its high maturity level and technical qualifications.

Certified for ISO 9001:2000, Birlasoft has formally mapped Six Sigma rigor with its SEI CMMI Level 5 Quality Management System (QMS) in each of its global development centers. In fact, Birlasoft is the first Indian IT Services Organization to be appraised at SEI CMMI Level 5 on Continuous Representation

OBJECTIVES OF THE STUDY

 To study attrition and retention rate in : j j 


Birlasoft Unified technology Pvt. Ltd.

To study the reasons for high attrition rate To suggest the strategies and steps for reducing turnover and improving retention.

   


To study the common reasons of employee voluntarily leaving or staying in organization. To study efforts made by organization to retain employee. To study various career development programs offered by the organization. To calculate the attrition cost. To study the impact of induction & training programs on retention of employees.

To determine the organizational climate

REVIEW OF LITERATURE

I.

The Role of Employee Retention William J. Rothwell and Naseem S. Sherwani, August, 2007 Employee retention is commonly considered to mean the ability to

maintain a stable workforce. It is often linked to morale and to organizational productivity. Retention is thus the opposite of turnover, a well-known concept. Turnover generally refers to the loss of people from the workforce. Involuntary turnover refers to losses due to death, disability, downsizing or layoffs. Voluntary turnover measures losses resulting from voluntary separations. Turnover is typically computed by dividing the number of terminations in a given period of time by the total number of workers in an organization's workforce and multiplying by 100. HR has been the focus of growing interest in measurement in recent years. Among numerous metrics to use for talent management, one is the emergence of so-called critical turnover . That refers to the ratio of high potentials , meaning those capable of promotion 2 or more levels in a 5 year time span, voluntarily leaving an organization divided by the total high potential workforce of the organization and multiplied by 100. Likewise, critical absenteeism refers to the ratio of high potentials that use sick or vacation time compared to the absenteeism ratios of other employee groups. II. Employee Engagement in the Public Sector, May 2007 It appears that the impacts of engagement, and of disengagement are wide-ranging and can have effects at all levels, from individual employees, to the climate of the team or department through to organisational performance. Far from being an abstract concept, the literature finds very

real and measurable impacts upon organisational performance of the effects of employee engagement and disengagement. However, the robustness of the evidence base must be considered before drawing firm conclusions. The subject of engagement is still relatively new in the literature and is not a well-studied academic research field; in particular, many of the studies have been carried out by management consultancies and research houses who may in part be biased towards positive results. Further, there is very little consideration in the literature regarding the cost of engagement schemes and how these compare to any benefits received. It is clear that the overriding sentiment throughout the leading texts is very positive with regard to the impact employee engagement has on organisational performance. Only a small proportion of employees can be described as engaged, with a far greater proportion of respondents to surveys reportedly either not engaged or disengaged. It began by looking at the general sentiment throughout the literature and concluded that there is an overriding belief in the literature that employee engagement has measurable and significant effects on the organisation's success. III. On bank privatization: The case of Egypt Mahmoud Mohieldin and Sahar Nasr, November 2006 The controversy regarding the privatization of the banking sector in Egypt. It provides an overview of the structure and evolution of the banking system, in the context of the series of reform measures undertaken by the Egyptian authorities over the past decades. The paper assesses the performance of the state-owned banks versus private banks over the period 19952005. Microprudential indicators, such as capital adequacy, asset quality, earnings, and profitability, reveal that state-owned banks lag behind

in terms of efficiency and performance, compared to their private counterparts. Results also suggest that retaining government ownership can adversely affect banks performance. The paper explores the factors hindering the smooth implementation of bank privatization. The authors indicate that the financial sector reform currently adopted is comprehensive; however it is confronted with various political, social, and economic risks, which raise concerns regarding its sustainability. IV. Recruitment and retention C F Insley, K J Builth, C N Butler, T J Corbett, June, 2004 The two organisations offer services to different client groups. Connexions are principally involved with younger people and is a Staffordshire based organisation, whilst Jobcentre Plus is able to link into nationwide online databases of job vacancies. Currently only 900 people are on unemployment benefit in this area and a further 4000 are in receipt of income support and incapacity benefit so the total locally available labour pool is around 5000. Managers and staff were asked for their comments on recruitment and retention i.e. Some salaries are not competitive with other authorities, Differentials may not be sufficient in some areas to fully reward managers, Salary levels are poor overall at middle to senior levels, Salaries do not compare well across departments and this is seen as being unfair, There are not enough training posts, Job information packs should be improved to enhance the image of the authority, Office accommodation is poor, There are hidden problems such as posts that have not become vacant for some time, Members of staff in the later stages of their careers are blocking promotion for others; these will all be retiring at around the same time.

RESEARCH METHODOLOGY
RESEARCH Research is an art of scientific investigation. In other word research is a scientific and systematic search for pertinent information on a specific topic. The logic behind taking research methodology into consideration is that one can have knowledge about the method and procedure adopted for achievement of objectives of the project. RESEARCH DESIGN A research design is the specification of methods & procedure for acquiring the information needed. This is overall operation pattern or framework that stipulates information is to be collected from which sources and by what procedure.

RESEARCH DESIGN USED: In my project work I used exploratory research, as it aim to answering question about sale, brand availability, service quality, distribution pattern etc. For conducting this study, Exploratory Research design was used, since: y It is natural. y It is flexible. y It is useful to find out the most likely alternatives.
y

It is appropriate, when hypothesis have been established.

The objective of exploratory research is to find out new ideas, it is important to give respondents to greatest freedom of response have conducted

individually or in depth interview, by which respondent asked to project themselves into a particular situation.

METHODS OF DATA COLLECTION

Both primary and secondary data are used for the study. Primary Data Primary Data is first hand information and thus happen to be original. Questionnaire is prepared in order to get first hand information. Secondary Data

The secondary data are those data which have already been collected by someone else and which have already been passed through the statistical process. Magazines , Journals are used as source of secondary data.

STUDY AREA The study of the topic Employees Retention has been confined to the employees of the Tech Unified & Biralsoft Ltd I have chosen both subjective and objective methodology with sampling, questionnaire and interview, analysis of data to complete my project study.

SAMPLE SIZE

: 100

TABULATION OF DATA

The data collected has been classified and put into pie charts & bar graphs. On the basis of these classifications, pie charts & bar graphs interpretations have been made. Classifying all the information according to the levels and experience of the respondents has done. The respondents answers, opinions, suggestions and viewpoints have been properly examined and utilized in this report. Different charts have been constructed to supplements the analysis.

LIMITATIONS OF THE STUDY

1.

Time constraint- the duration of training was short due to which it was difficult to collect data.

2.

Employees hesitate to disclose the information.

3. in

Employees were busy in their work and they dont show any interest our work.

4.

Our knowledge is limited as we are students and does not have much experience.

DATA ANALYSIS AND INTERPRETATION

(As per employees feedback) Ques 1. Since how long you are working in this organization? Options Below 3 months Between 3 6months Above 6 months T.U. 30% 40% 30% B.S. 40% 30% 20%

40% 40%

40%

No.of Respondents (%age)

35% 30% 25% 20% 15% 10% 5% 0%

30%

30%

30%

20%

Below 3 months

Between 3 6months

Above 6 months

Options

Analysis: The response shows that most of the employees working in the Techunified Limited are between 3 to 6 months and in Birla Soft Ltd. it is below 3 months.

Ques2

Are you satisfied with your current job?

Options Yes No Can't Say

T.U. 70% 20% 10%

B.S. 50% 35% 15%

70% 70% 60% No.of Respondents (%age) 50% 50% 40% 30% 20% 10% 0% Yes No Can't Say 20% 15% 10% 35%

Options

Analysis: The response shows that most of the employees are satisfied with their current job in Techunified Ltd. while in Birla Soft Ltd. it is only half of the total employees there.

Ques3

Are you looking/ planning for any change?

Options Yes No Can't say

T.U. 20% 70% 10%

B.S. 35% 50% 15%

70% 70% 60% No.of Respondents (%age) 50% 50% 40% 30% 20% 20% 10% 10% 0% Yes No Can't say 15% 35%

Options

Analysis: The response shows that 70% of employees are not planning for any change in Techunified Ltd. but in Birla Soft Ltd. it is 50%.

Ques4

According to you what are the reasons of resigning from job? Options T.U. 10% 12.50% 16% 18% 5.80% 2.50%
30% 25% 28%

B.S. 15% 10% 20% 28% 0 5%

Low Salary Bad Employee Practice Bad Experience with peers/ managers Lucrative opportunities from other companies Lack of Social life Others

No.of Respondents (%age)

20% 20% 15% 15% 10% 10% 5.80% 5% 0%

Low Salary Bad Employee Practice Bad Expeience with peers/ managers Lack of Social life Lucrative opportunities from other companies Others

18% 16% 12.50% 10% 5% 2.50% 0

Options

Analysis: The response shows that main reason behind leaving the job in both the organization is lucrative opportunities from other companies.

Ques5

Does the organization takes initiative in retaining employees?

Options Yes No Cant Say

T.V. 61% 29% 10%

B.S. 40% 40% 20%

70% 60% 50%

61%

No.of Respondents (%age)

40% 40% 29% 30% 20% 10% 0% Yes No

40%

20% 10%

Cant Say

Options
Analysis: The response shows that in Techunified Ltd. 61% of the respondents are in favour of organization and in Birla Soft Ltd. it is 40%.

Ques6

If yes what efforts they make? Options T.U. 40% 25% 10% 25% 0% 30% 5%
40% 35% 40%

B.S. 25% 19% 5% 20% 0% 20% 10%

Offer Salary Like Offer Training & Development Prog. Offer a Promotion Provides Flexible work hours Opportunities for international level Provides assistance in case of personal problem Others

No.of Respondents (%age)

30% 30% 25% 20% 15% 10% 10% 5% 0% 0% 0%

Offer Salary Like Offer a Promotion Opportunities for international level Others

25%

25% 19%

25% 20% 20%

10% 5%

5%

Options
Analysis: The response shows that salary hike is the main effort that organization should take in order to retain them.

Ques7

How frequently you are been rewarded/ praised by your boss? T.U. Once in a month Once in 2-3 month More than 3 months Never/ Rare On achieving the targets Can't Say 0% 5% 10% 35% 40% 10%
45% 40% 35% 30%

B.S. 0% 0% 10% 45% 30% 15%

45% 40% No.of Respondents (%age) 35% 30% 25% 20% 15% 10% 5% 0%
Once in a month

15% 10% 10% 5% 0% 0% 0%

Once in 2-3 More than 3 Never/ Rare On month months achieving the targets Can't Say

10%

Options

Analysis: The response shows that 35% of respondents say that they are either never or rare awarded in Techunified Ltd. and 45% are there in Birla Soft Ltd. who say this.

Ques8 Does the organization provide you with training programs if required? T.U. Yes No Cant Say 25% 40% 35% B.S. 19% 50% 31%

50% 50% 45% No.of Respondents (%age) 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Cant Say 25% 19% 40% 35% 31%

Options

Analysis: About 40% respondents in Techunified Ltd. and 50% in Birla Soft Ltd. say that they are not provided with any training programme.

Ques9

Does the company provide any assistance during employees personal problem?

T.U. Yes No Can't Say 30% 20% 50%

B.S. 20% 35% 55%

60% 50% No.of Respondents (%age) 50% 40% 30% 30% 20% 20% 10% 0% Yes No Can't Say 20% 35%

55%

Options

Analysis: About 30% of the employees in Tech Unified Ltd. and 20% in Birla Soft Ltd. are in favour that organization provide assistance during personal problems.

Ques10

If yes, what kind of help do they provide?

T.U. Financial Help Paid Leave Counseling Others

20%

B.S. 5% 10% 10% 15%

10% 20% 20% 10%

20%

20% 18% No.of Respondents (%age) 16% 14% 12% 10% 8% 6% 4% 2% 0%

Financial Help

15%

10%

10%

10%

10%

5%

Paid Leave

Counselling

Others

Options

Analysis: The common reason in both of the organization is paid leave and counselling.

Ques11

Do you find opportunity for direct communication with management? Options Yes No Can't Say
80%

T.U. 80% 20% 0%

B.S. 70% 30% 0%

80%
No.of Respondents (%age)

70%

70% 60% 50% 40% 30% 20% 10% 0%

Yes No Can't Say 0% 0% 20% 30%

Options

Analysis: About 80% of the employees in Techunified Ltd. and 70% of employees in Birla Soft Ltd. in favour of it.

Ques12

Does the organization provides you career development programs? T.U. Yes No Can't Say 60% 20% 20% B.S. 45% 35% 20%

60% 60% 50% No.of Respondents (%age) 40% 30% 20% 20% 10% 0% Yes No Can't Say 20% 20% 45% 35%

Options
Analysis: About 60% respondents are in Tech Unified Ltd. and 45% respondents are in Birla Soft Ltd. that organization provide opportunities for career development.

Ques13

Does the organization provides you with recreational facilities?

T.U. Yes No Can't Say 50% 30% 20%

B.S. 40% 35% 25%

50% 50% 45% No.of Respondents (%age) 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Can't Say 20% 30% 25% 40% 35%

Options

Analysis: The response shows that 50% of respondents in Techunified Ltd. and 40% in Birla Soft Ltd. says that organization provide them recreational facilities.

Ques.14 Does the organization give importance to physical fitness of an employee? T.U. B.S. Yes No Can't Say 40% 40% 20% 35% 45% 20%

45% 45% 40% No.of Respondents (%age) 35% 30% 25% 20% 15% 10% 5% 0% Yes No Options Can't Say 20% 20% 40% 35% 40%

Analysis: The response shows that 40% of respondents in Techunified Ltd. and 35% in Birla Soft Ltd. says that organization give importance to Physical fitness.

Ques 15.

According to you how much importance does organization gives to the following? (Please rate 1-5)

T.U. Work Standards Satisfaction of employees 60% 40%

70%

B.S. 70% 30%

70% No.of Respondents (%age) 60% 50% 40% 30% 20% 10% 0%

60%

40% 30%

T.U.

B.S.

Options
Work Standards Satisfaction of employees

Analysis: The response shows that much importance is given to work standards in both of the organizations.

Ques16 Do you find yourself comfortable with the organizational culture?

T.U. Yes No Not Applicable 60% 30% 10%

B.S. 45% 40% 15%

60% 60% No. of Respondents (%age) 50% 40% 30% 30% 20% 10% 10% 0% Yes No Options Not Applicable 15% 45% 40%

Analysis: The response shows that 60% of the respondents in Techunified Ltd. and 45% in Birla Soft Ltd. are comfortable with organization culture.

FINDINGS
 The attrition rates are:
y y

BirlaSoft- 17.5% TechUnified-9.09%

According to analysis the main reasons for voluntarily leaving the job are
y y y

Lucrative opportunities from other companies Bad employment practices Lack of social life.

 

The main cause for reduction in number of employees is resignation. Efforts made by organization to retain its employees are:
y y

Offer salary hike Offer training and development programs according to employee skills

y y y

Offer recreational facilities Provides assistance in case of personal problems Offer a promotion.

Provides career development programs to retain as well as to motivate employees to work efficiently in the organization

SUGGESTIONS
         Following steps/ efforts should organization take to retain its employees: Lucrative opportunities Implement good employment practices Maintain healthy organizational climate Proper training should be provided to employees according to their skills Proper salary structure should be there. Need to restructure companys policy and follow certain process to overcome problems. Should make a hierarchy for various positions. Steps and strategies that should be taken to reduce attrition rate
y y y

Provide lucrative opportunities within organization Implement good employment practices Try to create environment within organization so that employees can enjoy their work as well as social life.

Provide attractive salary to its employees.

CONCLUSION

The Attrition Rate of the Tech Unified is 9.09%, which is almost half as that of Birla Soft Ltd., and this is the good symbol for the organizations growth. As employees are the bases for company so retention of employees is a major focus for HR department. The management should identify the important factors that affect retention and should take necessary measures to improve these. Also, the management should take appropriate measure to identify the reasons of employee voluntarily leave.

Employee survey and exit interviews can be used for assessing the reasons of employee voluntarily leave. HR interventions such as improving selection process, effective orientation and training, better employee relation, better career development programs and planning etc should be used to improve employee retention.

BIBLIOGRAPHY

BOOKS: y Human Resource And Personal Management, K. Ashwathappa (3rd Edition). y Quality Manual Of The Company, Different Websites E.G. WEBSITES: y http://www.google.com y http://www.search.com y www.techunified.com y www.birlasoft.com

ANNEXURE
Questionnaire Determining Attrition and Retention Rate(for emp.) Name_____________________________________________________ Age______________________________________________________ Sex_______________________________________________________ Designation ________________________________________________ Name of organization ________________________________________

Ques1: Since how long are you working in this organization? i) ii) iii) Below 3 months Between 3-6 months Above 6months

Ques 2:Are you satisfied with your current job? i) ii) iii) Yes No Cant say

Ques 3:Are you looking/ planning for any change? i) ii) iii) Yes No Cant say

Ques 4: According to you what are the reasons of resigning from job? i) ii) iii) iv) v) vi) Low salary Bad employment practices Bad experience with peers Lucrative opportunities from other companies Lack of social life Others

If others please specify_______________________________________

Ques5: Does organization takes initiative in retaining employees? i) ii) iii) Yes No Cant say

Ques6: If yes what efforts they make? (Please rank) i) ii) iii) iv) v) vi) vii) Offer salary hike Offer training and development programs for career Offer a promotion Provides flexible work hours Opportunities for international travel Provides assistance in case of personal problems Others

If others please specify _______________________________________

Ques7: How frequently you are been rewarded/ praised by your boss? i) ii) Once in a month Once in 2-3 months

iii) iv) v)

More than 3 months Never/Rare On achieving the targets

Ques8: Does the organization provide you with training programs if required? i) ii) iii) Yes No Cant say

Ques9: Does the company provide any assistance during employees personal problem? i) ii) iii) Yes No Cant say

Ques10:If yes, what kind of help do they provide? i) ii) iii) iv) Financial help Paid leave Counselling Others

If others, please specify____________________________________ Ques11: Do you find opportunity for direct communication with management? i) ii) Yes No

Ques12: Does organization provide you career development programs? i) ii) iii) Yes No Cant say

Ques13: Does the organization provide you with recreational facilities? i) Yes ii) No

Ques14: Does the organization give importance to physical fitness of an employee? i) Yes ii) No

Ques 15:According to you how much importance does organization gives to following? (Please rate 1-5) i) ii) Work standards Satisfaction of employee

Ques 16:Do you find yourself comfortable with the organizational culture? i) Yes ii) No